Crain's Cleveland Business

CRAIN’S LIST Cleveland Clinic, UH now account for the most hospitals on our list.

SMALL BUSINESS: What business tax landscape could look like in 2022. PAGE 10

PAGE 18 CRAINSCLEVELAND.COM I DECEMBER 6, 2021

NEW KID ON THE BLOCK

Local developer sheds a dozen industrial buildings to out-of-town buyer

BY STAN BULLARD Following a sale of 12 industrial properties by affiliates of Premier Development Partners of Cleveland in a more than $185 million

deal, the region has gained another major player named Aurora Industrial LLC, operated by the Morning Calm real estate firm based in Boca Raton, Florida. • Meantime, Premier retains its substantial land holdings in Northeast Ohio and will use proceeds to diversify its holdings geographically outside the region while continuing to redevelop and build structures for businesses in the Cleveland-Akron area. • Mukang Cho, CEO of Morning Calm, which is building an industrial portfolio under the Aurora Industrial name, said in a phone interview, “This isn’t a one-and-done situation for us in Cleveland. We hope and expect to continue to scale up in this market. This is the start of a long relationship for us with Cleveland.”

See REAL ESTATE on Page 21

The massive Arhaus headquarters and distribution center in Boston Heights has been acquired by Aurora Industrial as part of a 12-property deal for Northeast Ohio industrial facilities. | COSTAR

‘We’re all part of a team’ New Pro Football Hall of Fame president Jim Porter embraces job

BY JOE SCALZO

PRO FOOTBALL HALL OF FAME

Jim Porter knows this story is going to sound corny, but he doesn’t care.

On his first day as president of the Pro Football Hall of Fame, as his phone filled up with congratulatory texts from employees saying, “I’m looking forward to working for you” – not to mention a few friends writing, – “I’d like to work for you” Porter kept giving the same response: “You don’t work for me. You work for the Hall. We all work for the Hall.”

See PORTER on Page 20

Pro Football Hall of Fame president Jim Porter succeeded David Baker on Oct. 16.

NEWSPAPER

VOL. 42, NO. 44 l COPYRIGHT 2021 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

P001_CL_20211206.indd 1

THE

Pandemic still keeping some people away from workforce

BY JAY MILLER

While Northeast Ohio went through a spike in the unemployment rate during the height of the COVID-19 pandemic, just as the rest of the country did, people in the region did not return to work at as high a rate as the country as a whole.

Instead, the region’s labor force, the number of people working plus the number of people who are seeking work, has shrunk since the pandemic began at a rate significantly higher than the rest of the country, said Cleveland-area economist James Trutko.

According to Trutko’s analysis of data from the federal Bureau of Labor Statistics, the regional labor force has declined by 91,000 people, a 6% drop,

LAND SCAPE

from February 2020 to September 2021. That compares with the national decline, which the BLS pegs at 1%.

“I’ve never seen really a loss in the labor force like this,” Trutko said in a phone interview last Tuesday, Nov. 30.

“The drop in employment and the simultaneous drop in the labor force, that’s the big new thing to me. Both of those numbers are very surprising.”

More typically, Trutko said, employees are laid off and the unemployment number climbs, but the number of people remaining in the workforce doesn’t decline at the same time. He said that while the region’s workforce has fallen over the last several decades, the decline had been in line with the decline in population.

See WORKFORCE on Page 21

A CRAIN’S CLEVELAND PODCAST

12/3/2021 2:26:13 PM

HEALTH CARE

Piecing together NEO’s competitive Medicare Advantage market

BY LYDIA COUTRÉ

Seniors in Northeast Ohio shopping for Medicare Advantage can chose from more plans than anywhere else in the country.

With 82 Medicare Advantage plans offered, Summit County has the highest number of available plans for 2022, followed by Cuyahoga and Medina counties, each offering 79 plans.

In fact, Northeast Ohio counties are eight of the top 10 counties nationwide for the highest number of Medicare Advantage plans, according to analysis from the Kaiser Family Foundation (KFF), a nonprofit focused on national health issues.

Lake, Geauga, Portage and Lorain counties all have more than 70 plans available to seniors — well over the national average of 39.

And it’s not just the proliferation of plans, but the number of companies as well. In Summit, 16 insurers are vying for Medicare beneficiaries and in Cuyahoga, 15. Virtually all counties across the region have at least a dozen companies competing in the Medicare Advantage market.

“In Northeast Ohio, we are in an extremely competitive environment that’s represented by Medicare Advantage plans of all types: national players, investor-backed plans, provider-owned plans and regional plans like us,” Nathan Hui, senior vice president of Medicare Advantage for Medical Mutual of Ohio, wrote in response to emailed questions. “Virtually every big Medicare Advantage player in the country is in Northeast Ohio with very few exceptions.”

Pinpointing exactly why the region is such a hot spot for insurers is a little difficult. Bill Epling — president of SummaCare, Summa Health’s health insurance company — called the dense market a “bit of a mystery,” though he, like others, has some ways to make sense of it.

“Why do we have so many companies in Cleveland? That is a little bit of a puzzle,” said J.B. Silvers, professor of health care finance at Case Western Reserve University’s Weatherhead School of Management.

The state and region have plenty of independent characteristics that are attractive to insurers in the Medicare Advantage space: an aging population, a Medicare Advantage penetration rate above the national average, a strong health care industry and a legacy of provider-sponsored health plans.

Although separately they aren’t particularly uncommon, “what’s unique is that these things all show up in Ohio at the same time,” said Rick Dunlop, health plan CEO of UnitedHealthcare’s Medicare and retirement business Silvers in Ohio, Illinois and Kentucky.

Ohio has the nation’s sixth-largest population of Medicare beneficiaries at nearly 2.4 million (according to 2020 data), which is a major draw for organizations looking to compete in this space, he said.

Nationally, Medicare Advantage has been growing Dunlop rapidly over the past decade, said Meredith Freed, policy analyst with KFF’s program on Medicare policy. In 2021, 42% of the Medicare population is enrolled in a Medicare

Number of plans beneficiaries can choose from in Ohio 61 or more plans

51-60 plans

26-50 plans

Lake 77 Geauga 71

Cuyahoga 79 Erie 53

Trumbull 73

Lorain 75

Huron 55

Medina 79 Ashland 57

Ashtabula 29

Wayne 62

Summit 82

Portage 73 Mahoning 72

Stark 76

growth, so a lot of investor-backed plans are aggressively pursuing membership in markets across the country.”

Nationally — and this is what’s evident in Northeast Ohio, Freed said — more insurers are entering the Medicare Advantage market and offering more and more plans. Plus, there are new entrants, such as Massachusetts-based Devoted Health, which launched in Ohio in 2020.

Between 2018 and 2022, the number of Medicare Advantage plans doubled or nearly doubled in Summit, Cuyahoga and several other Northeast Ohio counties.

“They’re ... trying to titrate their plans in order to capture the most people,” Freed said. “Some insurers are offering 10 or more plans in a specific county. So clearly, there’s a feeling that having more plan options is a way that plans can capture even larger enrollment.”

The marketplace operates on the premise that people on Medicare will compare plans to select the best coverage given their individual needs and circumstances.

“I FEEL LIKE IT’S A GOOD THING BECAUSE WE’VE ALWAYS TRIED TO COMPETE ON CHOICE, GIVE PEOPLE OPTIONS AND TRY AND FIT THEM OR HELP THEM INTO A HEALTH PLAN THAT’S GOING TO WORK THE BEST FOR THEM FOR THEIR HEALTH AND FINANCIAL CIRCUMSTANCES.” Advantage plan, compared with 25% a decade prior. The Congressional Budget Office projects a Medicare Advantage penetration rate of about 51% by 2030.

In many counties in Northeast Ohio, the rate is higher: Summit County stands at 54.3% and Cuyahoga is at 45.5%, according to KFF’s analysis of March 2021 data.

The region “clearly is an area where Medicare Advantage is very popular,” and as a result, plans seem to be coming in to meet that need, Freed said.

To some extent, the fierce Medicare Advantage competition reflects competition among providers, Silvers said, pointing to the integrated networks of Cleveland Clinic, University Hospitals and MetroHealth.

“Their goal is to drive as many people into their network as they can,” he said. “One way to do that is to write contracts with insurance companies that would be attractive to bring people into their network.”

Ohio — and Northeast Ohio in particular — has also had a lot of provider-sponsored health plans in the market over the years, creating more density and competition in the space.

“I feel like it’s a good thing because we’ve always tried to compete on choice, give people options and try

Counties in Ohio make up 8 of the top 10 nationally with the most plans available.

National Average 39 Summit, Ohio 82 Cuyahoga, Ohio 79 Medina, Ohio 79 Lake, Ohio 77 Stark, Ohio 76 Lorain, Ohio 75 Lebanon, Pennsylvania 74 Portage, Ohio 73 Trumbull, Ohio 73 Cumberland, Pennsylvania 73 SOURCE: KAISER FAMILY FOUNDATION

and fit them or help them into a health plan that’s going to work the best for them for their health and financial circumstances,” Dunlop said.

“And so to have others out there doing the same thing makes us try harder, makes us work harder.”

Epling also pointed to the region’s history of local health plans to help explain the phenomenon of Northeast Ohio’s extraordinarily dense Medicare Advantage market.

SummaCare, Summa Freed Health’s health insurance company, is one lasting example, as is Canton-based AultCare. The region used to have other players, such as HomeTown Health Network in

CRAIN’S CLEVELAND BUSINESS GRAPHIC

Stark County and QualChoice, once a subsidiary of University Hospitals.

Having several local plans offering Medicare Advantage for years got seniors used to the product, and attracted other companies to the market, Epling said.

“For me, it kind of helps to explain a little bit of the mystery as to why it’s so competitive,” he said.

Venture capital has been a pretty significant driver in the Medicare Advantage market as well, Hui said.

“There has been an enormous amount of venture capital focused on the Medicare Advantage market over the past four to five years,” Hui noted. “With those investments often comes a push for

— Rick Dunlop, health plan CEO of UnitedHealthcare’s Medicare and retirement business in Ohio

“But we’re finding that people generally don’t do that,” Freed said, pointing to an October KFF report that found that 71% of beneficiaries say they didn’t compare their coverage options during a recent open enrollment season. “And plans can change from one year to the next, which can lead to unexpected costs or disruptions in care if people lose access to their preferred doctors or if their list of covered drugs changes.”

Competition is good, Epling said, but choosing from dozens of plans can easily become confusing and overwhelming.

“Are we oversaturated? I think you can make an argument that perhaps that we are, if you see just the proliferation of the number of television spots and commercials and spokespersons, and I know seniors get inundated with phone calls this time of year,” Epling said. “So it just gets a bit overwhelming. And you know, at some point in time there is a point of diminishing return.”

The bottom line, Silvers said, is Northeast Ohio has proven to be a profitable market for Medicare Advantage for many companies.

“They just wouldn’t be here,” he said. “There’s nothing keeping them at the party, so the reason they’re still here is because this is a profitable market.”

Lydia Coutré: lcoutre@crain.com, (216) 771-5479, @LydiaCoutre

2 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P002_CL_20211206.indd 2

12/3/2021 1:56:47 PM

ENTERTAINMENT

Medina-based Family Entertainment Holdings eyes growth

BY JOE SCALZO

Drew Meyers is a partner in Seaport Capital, a lower middle-market private equity firm, and as such, he does a lot of things that don’t sound real exciting to 7-year-old boys.

To wit: His official job description includes “taking an active role in sourcing, analyzing and structuring new investment opportunities.” He also assists in “formulating the investment process and managing the operating activities of Seaport.”

Sometimes, this means weighing the pros and cons of investing in data centers.

But every once in awhile, it means taking your 7-year-old son to a monster truck show.

“We have accountants working on quality of earnings, lawyers working on contracts, and I got to take my 7-year-old to a show to see if he liked it,” Meyers said.

And? “He did,” he said. “He gave the thumbs up.”

On Nov. 9, a group of investors led

by New York-based Seaport and TV station owner Gray Television announced it had provided an undisclosed amount of growth capital to Medina-based Family Entertainment Holdings LLC. FEH specializes in two types of events: Hot Wheels Monster Trucks Live and Magic of Lights, an outdoor holiday lights show. It has plans to aggressively expand both over the next five years.

“How do you bet against those two things?” Meyers said, chuckling. “It’s basically Santa Claus and kids.”

Magic of Lights, which was launched in 2016 in the Cleveland suburb of North Ridgeville, will have 20 locations in North America this winter — nine more than last year, when the company drew 2.8 million visitors in 650,000 paid vehicles.

Seventeen of this year’s locations are in America, including the Cuyahoga County Fairgrounds, and three more are in Canada.

Hot Wheels Monster Trucks Live is a Hot Wheels-themed monster truck show presented in both North America and internationally. | HOT WHEELS MONSTER TRUCKS LIVE

a family going to see holiday lights. It’s all about entertaining families and kids and giving them a great experience.”

Hudgens has 30 years of experience in producing monster truck shows.

From 2008 to 2016, he was the COO of Feld Motorsports, a division of Feld Entertainment Inc., which promotes shows such as Disney on Ice and Sesame Street Live. In 2016, he joined up with partners Eric Cole, Tim Murray and Medina-based Grant Reeves to start the two entertainment properties.

By 2021, they were already the largest producers of these shows in the world, Hudgens said, so they started to look for growth capital.

Meyers declined to say how much Seaport invested, but said it made an initial investment and set some additional capital aside to help the business grow. Seaport said it typically invests $10 million to $30 million “OUR SWEET SPOT IS FAMILIES WITH of equity capital KIDS. IT COULD BE A YOUNGSTER in companies generating EBITGETTING HIS FIRST EXPERIENCE AT AN DA (earnings beARENA SHOW … OR A FAMILY GOING TO fore interest, taxes, depreciation SEE HOLIDAY LIGHTS. IT’S ALL ABOUT and amortization) ENTERTAINING FAMILIES AND KIDS AND between $3 million and $15 milGIVING THEM A GREAT EXPERIENCE.” lion.

Gray Televi— Ken Hudgens, founder and CEO of FEH sion, meanwhile, Ken Hudgens, the founder and CEO owns and operates stations in 101 of FEH, said the company wants to ex- television markets. Upon closing a pand to 50 locations within the next pending transaction with Meredith five years. The company also wants to Corp., Gray said it will own stations expand its international footprint, ei- serving 113 markets that collectively ther by designing the production here reach 36% of U.S. television houseand shipping it overseas or by licensing holds. Hot Wheels Monster Trucks Live and Magic of Lights already its designs and production methods.

Hot Wheels Monster Trucks Live work with the company’s stations in was established in 2019 with Raycom 30 markets, Gray said.

The Seaport/Gray investment alSports, a division of Gray Television. It holds 25 domestic shows and 10 inter- lowed Hudgens and his partners to national shows each year. FEH plans to put Hot Wheels Monster Trucks Live double both those numbers in the next and Magic of Lights under the Family Entertainment Holdings banner, five years, Hudgens said.

“The two shows are different, but while getting the capital they needed they’re exactly the same in one respect to expand.

“Live entertainment is something — it’s family entertainment,” Hudgens said. “Our sweet spot is families with that never goes away,” Hudgens said. kids. It could be a youngster getting his “The world is sort of removed from first experience at an arena show … or human interaction in some respects,

and I think live entertainment is more important than ever.”

Added Meyers, “Those are the first two formats they’re looking to grow and build up, but they’re creative guys. They’ve done a lot of different concepts over the years. I wouldn’t be surprised if Family Entertainment Holdings has more than just two offerings down the road.”

Although Magic of Lights is more of a northern attraction at this point — 11 of its 17 American locations are

in the Midwest or Northeast — it does have events in California, Florida and Texas.

Hudgens believes it can be successful anywhere.

“The holidays are universal,” he said. “It’s obviously a different feel when you’re in a place with 6 inches of snow than when you’re going through Daytona and it’s 75 degrees, but it works everywhere. We do more events north of the snow line, but that’s just because when we initially

established this, it was more logical.

Once we started having success, it grew from there.”

Each Magic of Lights event features 2 million individual bulbs stretching out over 12.6 miles of light cord. The company does all of its own designs, and some scenes are as high as 32 feet tall.

It takes about 25 days and 3,750 man-hours to assemble and about 10 days to take down, Hudgens said, and the company stores the shows on-site. At Daytona Motor Speedway, for instance, everything is stored in five or six trailers.

The company adds new products and displays each year, with this year’s events featuring a dinosaur-themed prehistoric Christmas display and a Bigfoot Monster Truck display. Next year’s plans include Barbie, Thomas the Tank Engine and Hot Wheels cars.

It sounds fun, but for Hudgens, the Christmas season isn’t exactly a holiday. There are cameras at each event, and he spends most nights in front of a computer, watching cars click through. He does the same for most Monster Truck shows when he can’t attend in person.

“When you’re the wizard behind the curtain in Oz, it’s probably less magical than if you get to drive through it,” Meyers joked.

Still, Hudgens tries to keep one thing in mind during his long December nights: His company is entertaining kids.

“It doesn’t get much better than that,” he said.

Joe Scalzo: joe.scalzo@crain.com, (216) 771-5256, @JoeScalzo01

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 3

P003_CL_20211206.indd 3

12/3/2021 9:30:23 AM

SMOOTH SAILING WITH

EDUCATION

CALL YOUR LOCAL CREDIT UNION TODAY!

Interest rates at all time lows!

Commercial Real Estate Loans up to $15 Million No Prepayment Penalties • As Little as 10% Down

CONTACT JONATHAN A. MOKRI

440.526.8700 • jmokri@cbscuso.com www.cbscuso.com

Some Ohio schools, including Kent State University, have introduced programs aimed at helping to make earning a degree more affordable. | RAMI DAUD/KENT STATE UNIVERSITY

Your Business Lending Partner SM

Ohio colleges design new programs to boost affordability, cut student debt

BY AMY MORONA

remium

ACCELERATED REAL ESTATE MARKETING LIST TO CLOSE IN LESS THAN 90 DAYS!

oneers in

Local, regional, national, and international advertising and marketing. Effective for all property types!

ational

very

MICHAEL E. BERLAND, AARE Principal & Managing Director Hanna Commercial / Chartwell Auctions

(216) 839-2032 mikeberland@hannacre.com

Providing a private travel experience that exceeds expectations

HOW TO FLY WITH SKY QUEST: » On-Demand Charter » Jet Card Memberships » Aircraft Ownership Opportunities

FlySkyQuest.com 216-362-9904 Charter@FlySkyQuest.com

Here’s an understatement: Going to college, for some people, can be expensive.

Costs rose a reported 169% between 1980 and 2019, and student loan debt was estimated to clock in at $1.73 trillion in the United States earlier this year.

Couple that with financial challenges the pandemic may have amplified or ushered in, especially for women and people of color. Completion rates for the federal form commonly known as the FAFSA, which gives those who complete it a chance to get federal or state aid to pay for college, fell during the pandemic.

Higher education institutions took a hit, too. Colleges nationwide saw a 4.5% decline in total full-time undergraduate enrollment in fall 2020 and an additional 3.5% drop a year later.

Over the past few months, several of Ohio’s colleges introduced or announced new pushes to help make earning a degree more affordable and reduce students’ debt loads.

The most recent is Ohio State University’s “Scarlet and Gray Advantage” program. OSU president Kristina Johnson detailed the initiative during her investiture speech in mid-November. Within the next decade, the state’s flagship university plans to offer a debt-free degree through a combination of grants, scholarships and work opportunities. The goal is for students to avoid taking out loans.

“This isn’t free college, or free tuition, or debt forgiveness,” Johnson said in an interview with Crain’s Cleveland Business. “It’s really a way of putting together multiple opportunities for our students to have the biggest choice when they graduate for what they do next.”

OSU plans to raise $800 million, with $500 million endowed, for scholarships over the next 10 years.

Donors contributing to that endowment had a question for Johnson.

“Almost every single donor has asked us, ‘Do kids and families have skin in the game?’” Johnson said.

The answer? Yes. Students are expected to be active participants by contributing to their own education through working. The university wants to expand its network of paid gigs available on- and off-campus.

Johnson said there’s a dual approach to this type of partnership.

The first, she said, centers on the lesson of “you value something you pay for,” something she learned while working during her own undergraduate days.

“The second is that these aren’t just ways for the student to contribute to their own college education; it’s a way for them to get career-enhancing experience,” she said.

Those participating will also have to meet additional requirements, including enrolling in some additional education. That will focus on topics like financial literacy, though some have pushed back on the effectiveness of that type of training.

OSU is set to pilot the Scarlet and Gray Advantage for 125 low- and middle-income first-year students in fall 2022 as it works to scale the offering over time.

The program made headlines locally and nationally when it was announced in November. Yet Kristina Dooley, a certified educational planner and founder of Estrela Consulting in Hudson, said the buzz around these types of announcements can sometimes fade quickly.

“I feel like families are learning about those things oftentimes after they’ve already looked at the school,” she said. “It’s not drawing them to consider the school at the onset, but it’s certainly something that could move that school to the top of their list.”

Affordability is the deciding factor for students and families, according to Jowan Smith, founder of Getting Our Babies to College 101.

“There’s no more of ‘just pick the school you love,’” she said. “Everybody is looking at how it impacts the household.”

At a workshop Smith delivered at a Cleveland-area high school last week, only one of the 18 students she talked with plans on enrolling in college next fall.

“They’re looking more at the trades,” she said. “They’re looking at alternative methods. They want immediate money.”

Enrolling at a traditional fouryear college isn’t an experience for everyone, and right now, the pull of directly joining the labor force is strong. A local college president recently told Smith it’s hard to compete against jobs like working in an Amazon warehouse with pay of up

to $17.50 per hour.

Median lifetime earnings are estimated to be about $900,000 higher for men with bachelor’s degrees and $630,000 for women, compared with high school graduates.

With that in mind, Smith tries to help young people see the big picture. She wants them to have a goal, and often encourages creating a five-year plan that includes some type of post-secondary education.

For those who do want to pursue a four-year degree, she’s noticed more interest in the University of Akron this year. UA introduced the Zips Affordability Scholarship in April. It covers tuition and the university’s general fee for Pell Grant-eligible traditional freshmen who live in one of six nearby counties.

Kent State University launched its own “Flashes Go Further” scholarship program in June. Officials said the goal is to expand access and get more students to graduate.

Students from Ohio who have a calculated expected family contribution of $10,000 or less are eligible, though there are some additional requirements. It’s meant to help cover unmet financial needs.

The average annual award was about $5,000, according to Sean Broghammer, KSU’s interim vice president for enrollment management.

“Flashes Go Further” differs from others as it also includes those who still fall below that family contribution threshold but don’t find themselves eligible for Pell Grants.

Broghammer said lower-middle-class students have become more challenged to pursue a degree as higher education costs have increased.

Though the focus remains on increasing access, he admitted there is a mutual gain to be had.

“I think by creating these types of programs, you’re going to raise awareness and maybe even attract additional attention, so you would hope that enrollment would follow to some extent,” he said.

Kent State doesn’t expect to see huge increases in enrollment, Broghammer said, but officials do anticipate seeing “some” growth for this demographic in this population.

Amy Morona: amy.morona@crain. com, (216) 771-5229, @AmyMorona

4 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P004_CL_20211206.indd 4

12/3/2021 9:29:50 AM

AKRON

Popular Akron restaurant Crave to move to the Bowery

BY DAN SHINGLER

The Bowery, Akron’s flagship urban development and a linchpin of the city’s strategy to rebuild its population and downtown economy, has landed its first major tenant.

Meanwhile, what is perhaps downtown Akron’s best-known restaurant, Crave, is expanding and moving to new digs.

And yes, those two things have everything to do with each other.

“We’re shooting for April,” said Aaron Hervey, Crave’s chef, owner and the person who established the popular restaurant on East Market Street, a block from Main Street, in 2005. “Everybody’s bursting to get out of their house in the spring, and I think it’s going to be great.”

Hervey and Donzell Taylor, CEO of Welty Building Co. and the leader of the Bowery development, confirmed that Crave is moving into the Bowery’s northernmost building, the Landmark. It’s among the larger and fancier of the Bowery’s groundfloor retail spaces and includes the former Akron Savings and Loan two-story lobby that will be Crave’s new home.

Hervey said he has big plans for the 8,000-plus-square-foot space, which includes a ground floor with 5,000 square feet and seating for about 140 with a bar seating 20. Upstairs, a 3,200-square-foot mezzanine that overlooks the ground floor will serve as an additional dining room and special events space with seating for more than 100. Outside, a patio will accommodate another 40 guests, he said.

The total capacity of more than 300 is significantly more than Crave has in its roughly 5,000 square feet on East Market, where it has room for 212 guests, Hervey said.

He’ll also need more people in the larger space — about 43, Hervey figures, compared with the 32 he needs to run Crave in its current location, where it’s open for dinner only. So far, he said he’s been happy to find out his key people are eager to make the move with him.

But while he has new plans for the new space, Hervey said he’s being careful to design the space, as well as the new menu, so that guests who were fans of Crave see things they recognize and feel at home with.

“This is a different circumstance.

It’s not a new business; we’re moving a business that’s been around for 16 years, and we need to make sure people aren’t confused,” Hervey said.

The interior will be a mix of black granite and stainless steel, alongside items from the original Crave — the hand-blown light fixtures Hervey imported from Crete are slated to make the move, for instance.

Among the new stuff will be a stainless-steel sculpture by Akron artist John Comunale, which Hervey said will rise from the ground floor to the floor of the mezzanine.

The new Crave also will be a bit more than a restaurant. It will help fulfill the Bowery’s need to have a food market with a small market and grab-and-go food mart in the back, said Hervey and Taylor. Taylor said The Bowery’s New Market Tax credits require it to have fresh food available to help serve downtown Akron’s “food desert” — and Crave’s market will meet that requirement.

It’s not all a done deal just yet, though. Crave still has to finalize its lease with the Bowery and get out of its current lease with developer Tony Troppe, on which it has fallen behind due to the pandemic.

Hervey said he expects to sign the new lease in mid-December.

Neither Hervey nor Troppe would say how much in back rent Crave owes, but both said they were optimistic the situation could be resolved. The city of Akron reportedly is considering using some of its federal pandemic funding to pay all or part of Crave’s back rent to facilitate the move. City officials said no check had been cut and that the city will provide further information if and when a final decision is made.

“While nothing has been finalized, during these unprecedented times, the city is committed to assisting struggling businesses, including both commercial tenants and their landlords when appropriate,” Sean Vollman, Akron’s deputy mayor for integrated development, said via email.

As for Troppe, he was his usual optimistic self when asked about the loss of an important tenant in his Blu Zone, an arts, residential and hospitality district on East Market.

“Change is good,” Troppe said, adding that this is certainly not his first rodeo where he got bucked off a

tenant or had a setback. “I’m a rodeo star,” Troppe said with a grin.

He said he’ll repurpose Crave’s existing space.

“It’s an opportunity for me to do something new with that building,” Troppe said. “It’s really never been redone since Crave moved in.”

Troppe said he’s sad to see Crave move on, but not surprised. He said it’s the natural course for Hervey, whom he described as a great chef and still a good friend, to take.

Besides, Troppe said, he’s got a lot of other plans in the works for his corner of downtown, which he said he’ll unveil soon.

Crave also has to finish arranging financing for the move. Taylor said he’s planning to do about $800,000 in tenant improvements for the new Crave, but those won’t include things such as kitchen equipment, tables, chairs, flatware and all the other equipment and supplies necessary to run a restaurant.

But Taylor said he’s now confident the move will happen — enough so, he said, that he’s starting to gather bids on the build-out from potential contractors.

Taylor said — and has said in the past — that he thought the pandemic would create opportunities to land new restaurant tenants.

“We felt the pandemic was going to be an opportunity for us. While the restaurant industry was being knocked around pretty good, you had operators looking at new options,” Taylor said.

Taylor said he’s excited that Crave is his first big retail tenant, because he said it will not only support the Bowery, but the adjacent Civic Theatre, Akron’s Lock 3 and all of downtown, by helping to draw in more people.

Taylor had also been saying for about the past two months that he was on the verge of landing a major tenant, which turned out to be Crave.

Now he thinks that Crave will make it easier to lease other spaces in the Bowery and is making similar claims again.

“I hope, in the next three to four weeks … to have another announcement that’s equally exciting as Crave,” Taylor said. “We’re very close.”

Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

React less. Plan more.

Let your goals be your guide Modesto “Moe” Ruggiero Managing Director– Wealth Management Senior Portfolio Manager Wealth Advisor

Ruggiero Wealth Management UBS Financial Services Inc. 600 Superior Avenue East 27th Floor Cleveland, OH 44114 216-736-8317

modesto.ruggiero@ubs.com

ubs.com/team/ruggiero

As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/relationshipsummary. © UBS 2020. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. CJ-UBS-2031105874 Exp.: 10/31/2021

THE

LAND SCAPE A CRAIN’S CLEVELAND PODCAST WITH DAN POLLETTA

NEW EPISODES EVERY TUESDAY AND FRIDAY

Crave has been at its current location, on E. Market Street in downtown Akron, for 16 years. | DAN SHINGLER/CRAIN’S CLEVELAND BUSINESS DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 5

P005_CL_20211206.indd 5

12/3/2021 12:10:24 PM

FINANCE

CI Financial investment sets up GLASfunds for next phase of growth

BY JEREMY NOBILE

After more than a decade of work in the alternative investment space, GLASfunds caught the attention of one of the largest wealth management firms in Canada, which is working to increase its American investor base.

Equipped with an undisclosed investment from CI Financial Corp., which in November acquired a 30% stake in GLASfunds — the “GLAS” stands for Great Lakes Alternative Strategies — this small Cleveland business is poised for its next stage of growth.

“We are in a lucky position in that we didn’t really need growth capital,” said GLASfunds founder and managing partner Michael Maroon. “In the absence of needing that, we were able to be patient and look for strategic partners if something came down the pipe. So we are really excited to hit the ground running.”

Through the tech-enabled GLASfunds platform, Maroon explains, advisers for high- and ultra-high-networth clients can aggregate client capital and invest in alternative assets, like private equity and hedge funds, through a digital dashboard that streamlines the process and reduces the paperwork typically required to execute a customized alternatives portfolio.

Its clients are RIAs (Registered In-

vestment Advisors), whose own customers are becoming increasingly more sophisticated and engaged with how their money is being invested. This is spurring asset managers to present more options to clients, including customizable portfolios with exposure to specific private market funds they might not otherwise have access to.

It’s an appealing platform to CI Financial, which has an option to buy out a majority stake in GLASfunds in the next four years.

Kurt MacAlpine was appointed CEO of CI Financial in 2019. Since then, he’s been guiding growth of the firm through a three-pronged strategy geared toward modernizing asset management, expanding wealth management and generally globalizing the business.

The deal with GLASfunds supports all those efforts.

The firm reached out to Maroon about a partnership because it “believed that GLASfunds has built an exceptional business with a strong industry reputation and a great runway for continued growth,” according to a spokesperson.

“Alternative assets are an increasingly important part of investing today, and having an execution platform like GLASfunds is a critical foundational component to our strategy in this space,” said MacAlpine in a statement. “Making this

“WE ARE REALLY DEVELOPING A MODEL THAT CAN HAVE A LOT OF ROOM TO PROCESS MORE INVESTMENTS, MORE CLIENTS AND MORE UNDERLYING MANAGERS.” — Michael Maroon, GLASfunds founder and managing partner

investment will enable us to deliver a better client experience, which is incredibly important as we work to build the leading high-net-worth and ultra-high-net-worth wealth manag-

er in the U.S.” CI Financial has been on an acquisition spree with MacAlpine at the helm. In two years, the firm has completed 25 RIA acquisitions in America as part of the strategy to establish its business here.

With these deals, CI Financial said its U.S. wealth management business represents about $98.7 billion in total assets. Its global assets total approximately $283.9 billion.

GLASfunds has approximately $524 million in regulatory assets under management, according to its latest public filing. The firm reports approximately $1.1 billion in total combined AUM and assets under contract.

In the last two years, GLASfunds has grown from five full-time employees to 11, plus a few additional contracted part-time staff for data and software engineering.

The firm has also doubled its downtown office space in that time to 5,500 square feet. It’s projecting to achieve 43% revenue growth by the end of this year.

The investment by CI Financial will help the business further develop its platform and add even more staff. There’s no specific headcount Maroon is shooting to reach. But positions he’ll be hiring for are in such areas as software engineering, coding and investor relations.

“We are really developing a model

that can have a lot of room to process more investments, more clients and more underlying managers,” Maroon said.

Fresh work on that front-end dashboard for advisers managing investments has been ongoing for at least a year. Such a platform, which could be simultaneously useful to advisers and their clients, underscores where Maroon says the industry is heading.

“It should really enhance our offerings,” said Maroon of work on the GLASfunds platform. “And to my mind, this should be expected in the marketplace at the next level for making transactions, helping make the adviser’s work much easier.”

But wants by investors are what’s ultimately driving GLASfund’s work.

“In the high-net-worth and ultrahigh-net-worth sectors specifically, there is a growing need for alternatives in portfolios, which we expect to only increase as they become more accessible. GLASfunds helps solve the accessibility issue,” said a CI Financial spokesperson. “Access to alternatives is a key offering that can be difficult for some advisory firms to provide at scale as well. GLASfunds helps make alternatives much more available to RIAs — and ultimately their clients — through its turnkey, digitized and streamlined approach.”

Jeremy Nobile: jnobile@crain.com, (216) 771-5362, @JeremyNobile

SPONSORED CONTENT

Benefits of a breakeven analysis for restaurant owners Is your restaurant getting 10% margins on its revenue? If not, let’s talk.

DIRK AHLBECK, CPA

By Dirk Ahlbeck, CPA, Apple Growth Partners

NATIONAL RESTAURANT PRACTICE LEAD, APPLE GROWTH PARTNERS With more than 20 years of public accounting experience, Dirk joined AGP as a tax principal and national restaurant practice lead. Dirk’s expertise consists of servicing restaurants, including breweries and wineries, and other industries such as distribution, construction, and professionals in the service sector. A frequently requested presenter, Dirk provides business owners within the food industry best practices for tax planning, accounting, and most recently, navigating the changes brought on by the pandemic for restaurant owners. He has also provided extensive consulting services to assist his clients with identifying tax-saving opportunities, improving profitability and performance by utilizing benchmarking and related metrics, developing more streamlined accounting systems and other best practices from the restaurant industry. Dirk holds a Bachelor of Arts in Accounting from Michigan State University. He is an active member of the AICPA, ILCPAS and Illinois Craft Brewers Guild.

He also served on the Advisory Council of the Illinois Restaurant Association and is past president of the Food and Beverage Equipment Executives. He shares his experience and knowledge of the industry as an adjunct professor in the Manfred Steinfeld School of Hospitality at Roosevelt University in Chicago.

The restaurant industry has experienced a challenging 18-month tidal wave of changes and obstacles. In a year of unprecedented tests for restaurant, bar and winery owners alike, the current state of affairs seems promising as a new year approaches, and now is the time to focus on a strong financial outlook for growth.

One method for financial forecasting is to calculate your restaurant’s breakeven analysis.

A breakeven analysis can be used to find out how much of every dollar at various sales levels above the breakeven point should go to the bottom line. Simply put, this analysis can determine how far in advance costs and expenses should be forecasted for the restaurant to be profitable.

A breakeven analysis also helps owners calculate weekly and monthly sales to identify breakeven points for year-end planning and predictions. If a restaurant has considerably higher volume in the summer months, how can expenses be shifted in the winter months to offset? A solid breakeven analysis can help restaurant owners assess risks and aid in making the most well-informed decision.

What is a breakeven analysis?

A breakeven analysis is a calculation of how much in sales a restaurant needs to cover all of its costs for a certain period of time. Consider it the amount of revenue necessary to cover the total fixed and variable expenses incurred

knowing final sales numbers. This could assist with year-end financial planning, hiring and staffing allocations and the ordering of inventory.

within a specific period of time while operating your restaurant.

How does a breakeven analysis help?

A breakeven analysis will give a clear minimum sales number needed to keep the lights on. It can also be utilized to identify early on if the restaurant is losing money. A breakeven analysis should pinpoint month-over-month volumes to help restaurant owners analyze seasonal trends versus a consistent decline of volume. The calculation can also be used to properly forecast year-end totals without

How to calculate a breakeven analysis The basic formula is: breakeven sales = total fixed costs/1-variable cost % What are the considered costs?

Fixed costs are expenses that stay the same regardless of sales volume, such as rent.

Variable costs are fluctuating expenses that reflect sales volumes, such as cost for food and beverages and labor. Mixed costs have a fixed and variable cost component, which should be considered fixed costs in the calculation.

Calculation method For best results, use a four-week or monthly

profit and loss statement (P&L) covering three periods from the last 12 months to calculate a breakeven analysis. Using real-time data will allow you to take into consideration market changes and seasonal trends specific to your area. Your breakeven analysis should include your restaurant’s highest and lowest sales period to adequately calculate a middle-ofthe-road view. Owners should assume every expense category or cost that is not truly 100% variable in nature is fixed.

Using the breakeven analysis model can help you estimate how much money your restaurant is making based on a certain level of sales.

This data can be used to determine in-house features, such as sales or special events. This valuable benchmarking tool can help forecast a restaurant’s profitability -- one data point among a year of consistent changes.

This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

6 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P006_CL_20211206.indd 6

12/3/2021 12:13:03 PM

THE WEEK

Sleggs, Danzinger & Gill, Co., LPA

Reducing Real Property Tax Assessments Throughout Ohio And Across The United States Cleveland’s baseball team completed a $26 million renovation at Progressive Field in 2015. The work was privately financed by the club and its concessionaire, Delaware North. | JASON MILLER/GETTY IMAGES

PLAY BALL!: The Indians may be gone, but Major League Baseball is staying in Cleveland. Cleveland City Council made sure of that.

Council voted 13-3 on Monday night, Nov. 29, to approve its portion of the $435 million Progressive Field renovation package known as Emergency Ordinance 844-2021.

The move ensures the Cleveland Guardians will remain in Cleveland through 2036. The city will contribute about $8 million per year, mainly through admission taxes and revenues from the Gateway East parking garage. On Nov. 9, Cuyahoga County Council voted 9-1 to approve funding its portion of the $202.5 million deal to renovate and maintain Progressive Field until at least 2036.

DESIGNS ON GROWTH: The Sherwin-Williams Co. cleared a major hurdle Tuesday, Nov. 30, winning final design approvals for its planned three-building headquarters complex just west of Public Square. Members of four public review bodies signed off on plans for the downtown Cleveland project, which will remake roughly 7 acres of parking lots in the heart of the city. Sherwin-Williams recently started site work on the property, which runs north from Superior Avenue at the eastern edge of the Warehouse District. The publicly traded coatings giant expects to move into its new home, a glassy, 36-story tower, in late 2024. That office building, at the northwest corner of Superior and West Third Street, will be the centerpiece of a campus that will include a lowslung pavilion facing Public Square and a five-story parking garage closer to St. Clair Avenue. Tuesday’s meeting, which lasted more than two hours, marked the third round of a design-review process that kicked off in July.

JOB WELL DONE: Dr. Akram Boutros will retire as president and CEO of MetroHealth at the end of 2022 after leading the public health system since 2013, he announced on Monday, Nov. 29. Boutros was brought into the system to help transform MetroHealth and establish long-term sustainability and has since “exceeded the board’s, employees’ and the community’s expectations,” said MetroHealth board chair Vanessa Whiting, who served on the search committee that hired Boutros. Since 2013, MetroHealth has opened two hospitals, three emergency departments, 10 community health centers and nine pharmacies, and sent health care providers into more than a dozen local schools, according to the re-

lease, which also notes that under Boutros’ leadership, the system’s annual revenue grew from $785 million to more than $1.5 billion.

FULL SPECTRUM: Pleasant Valley Corp. co-CEOs Gino and Barbara Faciana acquired the Spectrum Building, 6060 Rockside Woods Blvd., Independence, as an investment and an additional location for the Medina-based company’s growing real estate and construction businesses. Through PVC Independence LLC, the Facianas paid an affiliate of Dalad Group of Independence $13 million for the 120,000-square-foot building, according to online property records for Cuyahoga County. Dalad has owned and operated the structure since building it in 1984. The Facianas said they plan to move a so-far-undetermined number of staffers, perhaps as many as 40 over the next year, to the building and relocate another 30 to the structure from other leased space in Independence, including the headquarters of its NAI Pleasant Valley Corp. real estate brokerage. Pleasant Valley will continue to operate Spectrum as a multitenant building and will have additional space for new tenants beyond its own needs, Barbara Faciana said. The structure has about 24,000 square feet of empty space to fill in multiple suites.

HIS LATEST PROJECT: Actor, producer and businessman Mark Wahlberg has taken a shine to Lorain County. Wahlberg and his business partner, veteran automotive dealer Jay Feldman, announced Thursday, Dec. 2, that they have opened a Mark Wahlberg Airstream & RV dealership at 4500 Grove Ave. in Lorain. It’s the second Lorain County dealership for Wahlberg and Feldman, who in July acquired auto dealership Joe Firment Chevrolet, 37995 Chester Road in Avon, and renamed it Mark Wahlberg Chevrolet of Avon. The new Lorain dealership is the sixth in Ohio for Wahlberg and Feldman, who also have four dealerships in the Columbus area. One of those Columbus dealerships is a Mark Wahlberg Airstream & RV shop, which opened in 2020. Sales functions officially started Wednesday, Dec. 1, at the Mark Wahlberg Airstream & RV dealership in Lorain, though the main facility remains under construction. When construction is completed at the end of next year, the dealership, which is on a 5.8-acre site, will feature 31,000 square feet of showroom, service and parts space, and it will employ about 30 to 35 people. It has eight employees at present.

When you hire Sleggs, Danzinger & Gill, you work directly with Sleggs, Danzinger and Gill.

Each client is directly represented at all levels by a Partner of the firm with a combined 90 years of experience. No pyramid, no associates, no on-the-job training.

Our clients deserve the very best representation, so we structured our firm to allow each client, throughout the entire process, to work directly with Todd Sleggs, Robert Danzinger and Steve Gill. Our philosophy is to work cooperatively with school district and county officials to ensure that our clients pay the lowest possible real property tax obligations. If a fair resolution requires litigation, Sleggs, Danzinger & Gill have the depth of trial and appellate experience to handle the most complex valuation issues.

Whether the valuation relates to large industrial plants, apartments, shopping centers, warehouses, office buildings, hotels or any other type of commercial property, the attorneys at Sleggs, Danzinger & Gill will ensure that you receive the best counsel, legal advice and litigation expertise.

Most importantly, Sleggs, Danzinger & Gill wishes everyone continued health as we navigate through the Covid-19 pandemic.

Todd W. Sleggs, Esq tsleggs@sdglegal.net

Robert K. Danzinger, Esq rdanzinger@sdglegal.net

Steven R. Gill, Esq sgill@sdglegal.net

(216) 771-8990 www.sdglegal.net

Sleggs, Danzinger & Gill

820 West Superior Avenue, Seventh Floor Cleveland, Ohio 44113

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 7

P007_CL_20211206.indd 7

12/3/2021 9:17:23 AM

PERSONAL VIEW

How to build your networking muscle

RICH WILLIAMS FOR CRAIN’S CLEVELAND BUSINESS

BY MICHAEL FERRY

EDITORIAL

Community first “T

hanks for moving beyond being a medical institution and becoming a community health partner.”

That’s how Chris Ronanye, former president of University Circle Inc. and a candidate next year for Cuyahoga County Executive, reacted on Twitter last week to the announcement that MetroHealth president and CEO Dr. Akram Boutros would retire at the end of 2022. Ronanye was hardly alone in praising the MetroHealth boss for a job well done, but the sentiment struck at getting to the heart of what has made Boutros a transformational leader in Cleveland.

You can look at numbers to tell a certain story, and there are a lot of them. Since Boutros joined MetroHealth in 2013, the health system’s employee base has grown from 6,200 to nearly 8,000; its annual revenue increased from $785 million to more than $1.5 billion; and it opened two hospitals, three emergency departments, nine pharmacies and 10 community health centers.

All impressive. More impressive, though, is that they happened in a context of MetroHealth embracing its role as a community partner. The $1 billion transformation underway at MetroHealth’s main campus will include new buildings but also a 25-acre green space, and it has led to the development of the Clark-Fulton/MetroHealth EcoDistrict, aimed at helping build the neighborhood in an equitable and sustainable manner. One example: the $60 million mixed-use Vía Sana project, which in its first building will feature 72 affordable rental homes and on-site job training center. Boutros and MetroHealth have recognized that the health of the neighborhood is nearly as critical as the health care the organization provides.

Boutros has become such a key part of Cleveland that it’s fairly staggering to consider he almost didn’t wind up in the job. The health system’s first choice, the CEO of a medical center in New Jersey, unexpectedly reneged on his commitment two weeks after accepting the post, which ultimately led to Boutros’ hiring.

We’re the better for it. Boutros will leave MetroHealth in much better condition than it was when he arrived. Northeast Ohio is undergoing a huge change in its leadership structure, and Boutros will be missed. His combination of skilled administrator and charismatic champion won’t be easy to re-

place. But he has put in place a plan that gives us confidence that more exciting developments are ahead for MetroHealth.

The bright side Like its predecessor, 2021 will not go down in history as a great year. (Lingering pandemics will do that.)

It’s something of a relief, then, to take note of a couple positive developments in our corner of the world that give us hope of better things to come.

If you live or work in downtown Cleveland, you know that giant construction cranes in the air are a relatively rare sight.

There are some now, though, just west of Public Square, where Sherwin-Williams Co. has started site work for what will be a three-building headquarters complex. Public-review bodies last week gave final design approvals for the project, which includes a skyline-altering, 36-story glass tower that the coatings giant expects to occupy in late 2024.

It took a long time and a lot of work — by the company and by public officials who put together the package to keep Sherwin-Williams growing in its hometown — to reach the point where a part of downtown now dominated by surface parking lots stands to become activated and vibrant. The wait will be worth it.

More immediately, Cleveland Mayor-elect Justin M. Bibb made quick work of putting together an impressive team to get the new administration off to a fast start in January.

Bibb last week announced the names of more than 75 people — mixing experience and youth, and reflecting the diversity of the city he will lead — who will serve on 10 sub-committees and two task forces for the administration’s transition team.

If surrounding yourself with smart, strong people is an important measure of leadership, Bibb passed an early test. To populate sub-committees for economic development, education, environment, equity and other key areas, Bibb has drawn on original thinkers who know their way around the city.

There’s no guarantee that assembling a talented team will lead to the results you want. But it sure helps, and we’re encouraged that the people who have the incoming mayor’s ear know what they’re talking about.

Executive Editor: Elizabeth McIntyre (emcintyre@crain.com) Managing Editor: Scott Suttell (ssuttell@crain.com) Contact Crain’s: 216-522-1383 Read Crain’s online: crainscleveland.com

“I hate networking!” Early in my career that was my reaction to the idea of getting in a room with total strangers at business events. Now, I’m the one telling others how important networking is for your career growth.

You can build networking muscle and actually enjoy networking. Creating and building business relationships will serve you well throughout Ferry is director your career no matter your age. And, of business for those under 40, be extra-attentive affairs for the to every opportunity to join a network- Foundry ing event. Building network muscle Community early in your career will set you apart Rowing and from your peers. Doors will open for Sailing Center in you. Hard work, and a good network, Cleveland. are key ingredients for your future success.

Young professionals today rely a lot on social media for communication. No doubt during the height of COVID, we had to rely on virtual means to gather in groups — hello, Zoom. Now, however, as COVID restrictions are reduced, excellent networking opportunities are popping up everywhere in this market.

It is time to fully embrace those opportunities. To do so, I suggest preparing before the event begins. Focus on the event, be curious and be open to conversations so that you’ll be seen as approachable. Put your phone away and avoid distractions.

Going to a network event after your workday is an extension of “work.” It would be far easier to go home and skip network events, yet finding the energy to participate fully in an event will pay huge dividends. You may not see it right away, but you will be thankful later that you invested in your future by attending these events. Select a couple each month to attend. (You do not have to go to them all; that is way too much.) Eventually you will be a smart judge of what draws the best crowds. Follow your instincts. (For example, this publication generally produces wonderful network opportunities to engage in.)

It is the relationships you make now that will propel you in your career, advised Dennis M. Lafferty, local consultant and brand strategist. “Young professionals need to appreciate that the peer contacts they make during (and after) networking events will. as they advance in their respective careers, gravitate to doing business with those they have a lengthy relationship with,” he said.

Think about your event carefully and arrive early if possible. Become familiar with the room. Chat a bit with the event’s host, who most likely will greet you at the door since you will be there on time. If you can, glance at the display of name tags to see if anyone you know will be there. Make mental notes of talking points for that person. Take the time to settle in. There is nothing worse than rushing to an event to arrive late and then try to acclimate before the program starts.

Your best networking time is at the beginning of the event, before the formal program. Once seated at a table, you are essentially stuck. Use your time wisely. Don’t worry about the buffet. You cannot meet people while holding a plate of chicken wings and your drink. Don’t put yourself at a disadvantage during this time. Give yourself the best advantage by staying focused on who to meet, not what to eat.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113, or by emailing ClevEdit@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

See NETWORKING, on Page 9

Sound off: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

8 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P008_CL_20211206.indd 8

12/3/2021 2:47:22 PM

OPINION

Call us today!

LETTER TO THE EDITOR

Akron 330.535.2661

The Twelve ‘Nays’ of Christmas 2021 The three Abrahamic spiritual traditions have been kidnapped by corporate culture. No ransom demanded.

Corporate America merely requires believers to mutate into cooperative, uncomplaining consumers by substituting the contents of the boxes within fulfillment centers for their spiritual beliefs.

One-day delivery in the hand is worth three religious holidays in the bush. The three Abrahamic traditions cannot compete with a well-stocked Black Friday, Cyber Monday and a 70%-off sale. Regrettably, even Thanksgiving has devolved into a carb-loading event prior to an all-night buying marathon.

Corporate culture requires believers to say “no” to religious traditions by saying “nay” to what we believe, substituting trinkets, baubles, wuzzles and jing-tinglers.

To what must believers say “nay”? Corporate culture seduces believers into saying “yes” to “The Twelve Nays of Christmas.”

On the first day of Christmas, Corporate gave to us a promise of consumer serenity.

On the second day of Christmas, Corporate gave to us two-day delivery.

On the third day of Christmas, Corporate gave to us three credit cards.

On the fourth day of Christmas, Corporate gave to us four points or rewards.

On the fifth day of Christmas, Corporate gave to us five golden ads.

On the sixth day of Christmas, Corporate gave to us six irresistible fads.

On the seventh day of Christmas, Corporate gave to us seven salesmen selling.

NETWORKING

From Page 8

Other than your neat business appearance and positive attitude, business cards are the most important thing you can have. Have plenty of cards and be prepared to retrieve them quickly. Far too often, people fumble around searching for a card or must apologize for not having one. This is a classic mistake, but avoidable if you plan ahead. If someone does not have a business card, offer your card and ask them to send you their contact details. Some people will offer to connect with you on LinkedIn. Regardless, it is imperative that you develop a cadence around exchanging business cards and contact details. Take the lead and extend your card to them saying, “Do you have a card?”

While at the event or immediately after, jot down key facts on the business card about the person you just met. For example, “Played lacrosse in college” or “Goes to Florida every winter.” Whatever comes to mind to jog your memory, write it on the business card. Also note the date, which will help when you want to follow up with that person. Organize your cards for easy reference later. Some people use apps to store and retrieve business cards. Find what works for you and stick to it. Tossing out business cards the day after an event is a mistake.

YOUR RELATIONSHIP BUILDING TAKES TIME, AND THIS FOLLOW-UP SUGGESTION IS THE BEGINNING OF THAT PROCESS. SHARPEN THESE SKILLS AND YOU WILL BE AMAZED HOW STRONG YOUR NETWORK WILL BE IN JUST A COUPLE YEARS. Another investment you should make is to work on your memory skills. Upon meeting someone, do your best to remember their name so that later that night, or that week, you can recall the name without fail. Memory skill is a critical factor for you in many areas of your

On the eighth day of Christmas, Corporate gave us eight commercial maids, compelling.

On the ninth day of Christmas, Corporate gave to us nine online coupons.

On the tenth day of Christmas, Corporate gave to us ten tempting Groupons.

On the eleventh day of Christmas, Corporate gave to us eleven influencers promoting.

On the twelfth day of Christmas, Corporate gave to us twelve app-trackers tracking.

We are all familiar with the 1897 letter written by 8-year-old Virginia O’Hanlon to the New York Sun asking if Santa Claus is real. The Sun’s editor assured Virginia that Santa Claus is as real as “love and generosity” which bring us the “highest beauty and joy”.

How would we answer a contemporary Virginia texting the same question today about Christmas on her laptop? Would we answer as the Sun’s editor responded, by elevating love and generosity, which are interwoven in the words of Jesus, Moses and Muhammad?

Or would we text to Virginia the corporate culture’s answer, which answers “nay” to Christmas and the three Abrahamic spiritual traditions, promising jing-tinglers, tah-tinkers, gah-ginkers, trum-tookers, wuzzles and roast beast?

For guidance, we may all benefit from Dr. Seuss’ message conveyed through the Grinch’s redemptive realization in “How the Grinch Stole Christmas”: “Christmas, he thought, doesn’t come from a store.

Maybe Christmas, perhaps, means a little bit more.”

Sheldon Firem Chardon

Who is managing

Cleveland 216.831.3310 Medina 330.239.0176

your properties?

Our property management, facility management & maintenance teams are ready and able to respond to the urgent needs of our owners and tenants at any time.

www.naipvc.com www.pleasantvalleycorporation.com

career, not just networking, so develop your fluency now.

While you are getting to know someone, remember NOT to start talking about your work right away. In fact, don’t even mention it, which may seem counterintuitive. Ask about their job, their company, their role, etc. Ask, ask, ask. Eventually human nature will prompt them to ask about you. That is a wonderful time to mention your role at work or talk about your company — but only briefly. Please don’t pitch anything to someone you just met. Bad form.

Open-ended questions are your best friend at events. Memorize three good questions that you can bring up at a moment’s notice. While standing there, you may sense an awkward moment of silence, so it is best to be prepared. It happens from time to time so a good defense is to memorize these kinds of questions: “What is your biggest challenge at work these days?”

“What is your favorite part of attending these events?”

“What are some other network events you recommend that work for you?” You get the picture. Just remember to listen and pay attention to the person you are meeting. They are your priority right now.

Rather than talk about work, a more effective method is to contact them a day or two later and say how much you enjoyed meeting them. Ask to get together for coffee because you’d like to continue the conversation, or you would like to get their advice on something. In this moment, be sincere. Don’t waste someone’s time without offering them something of value.

Your relationship building takes time, and this follow-up suggestion is the beginning of that process.

Sharpen these skills and you will be amazed how strong your network will be in just a couple years.

I wish I had a networking coach early in my career. It would have been easier for me to value the importance of networking at that stage of my career. My advice is to try a few events this coming year. Don’t think that you have to meet a dozen new people at your first event.

Rather, set a moderate goal of meeting two new people. Think of quality meetings over quantity. Finally, as with anything, practice your follow-up. Develop a style that works for you. Stick with it, and before you know, it you will actually look forward to attending these great opportunities to expand your network. There is no better investment in your time that will produce rich rewards later.

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 9

P009_CL_20211206.indd 9

12/2/2021 12:43:19 PM

WHOA! DOUGH Investor builds out a line of healthy-yet-indulgent cookie-dough bars.

SMALL BUSINESS

ing, sale curr cep est guid brin reve Th acte one pay unp Lon duc port hea L hop end

PAGE 12

A le

CRAIN’S CLEVELAND BUSINESS PHOTO ILLUSTRATION

A Ohi wha tor tion Bus No. mem and “I of o cost top In fa cate said whi er w

THE TAXMAN COMETH What Ohio's business tax landscape could look like in 2022

BY KIM PALMER How and why businesses, including

small businesses, pay taxes is a seemingly never-ending discussion and the subject of a handful of prospective bills currently under consideration in the Ohio Statehouse.

Even after the state biennial budget passed about $1 billion in tax cuts in July — including a provision eliminating Ohio’s sales tax on employment services used by businesses to hire temporary or permanent workers, representing an estimated $300 million over two years — some lawmakers are looking for more ways to lessen the state’s commercial tax burden.

10 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

A HOST OF LEGISLATION IN THE OHIO STATEHOUSE COULD MEAN MORE TAX REFUNDS, TAX CREDITS, TAX EXEMPTIONS AND POSSIBLE TAX AMNESTY FOR THE STATE’S BUSINESSES IN 2022.

For those businesses and owners who might have found themselves with an overwhelming state tax obligation during the COVID-19 pandemic, Ohio House Bill 45 is one way to deal with not being current with the state’s taxation department.

The bill would establish a twomonth tax “amnesty” from July 1 to Aug. 31, 2022, when unreported or underreported state taxes can be remitted without the corresponding interest and penalties.

“People might not think we need an amnesty program, but given the craziness and disruption from the pandemic, we believe there might be some out there that didn’t think they needed to pay taxes or goods that should not have been in the state,” said Tony Long, director of tax and economic policy at the Ohio Chamber of Commerce.

If the bill is passed, taxes — including state sales, income and severance tax, employer withhold-

e n e t y t y c f

d -

FOCUS | SMALL BUSINESS “IN RANDOM AND REGULAR SAMPLING OF OUR MEMBERSHIP SINCE 1986, THE COST OF HEALTH INSURANCE HAS BEEN THE TOP CONCERN AMONGST OUR MEMBERS. IN FACT, 47.4% OF OUR MEMBERS INDICATE IT IS A CRITICAL CONCERN.”

ing, commercial activity tax, liquor sales and permit fees and others, currently in arrears — will be accepted, and all penalties and interest will be waived. If history is any guide, the move is estimated to bring in at least $10 million in lost revenue.

The general tax amnesty, last enacted in 2018, would help “alleviate one economic pressure point as taxpayers begin to recover from this unprecedented period of time,” Long said. The bill, which was introduced in May, has bipartisan support and had a fourth committee hearing on Nov. 16.

Long and other supporters are hoping the bill will pass before the end of 2021.

— Chris Ferruso, legislative director for the Ohio chapter of the National Federation of Independent Business

lion in gross receipts.

The bill would offset employer-provided health care costs with a 1.3% tax credit on small group plans, a move that helps with cost increases.

Since 2011, the cost of family coverage plans for small firms has increased by 45% — and with worker shortages, putting together a competitive benefits package is crucial and levels the playing field between small and large businesses, Ferruso said.

Ferruso argues that the bill provides smaller businesses subject to state-imposed health insurance mandates financial relief by offsetting recent mandate costs while also ensuring only businesses with Ohiobased employees are eligible. It excludes larger, self-insured companies not subject to state mandates.

A level playing field

CRAIN’S CLEVELAND BUSINESS PHOTO ILLUSTRATION

Another recently introduced bill, Ohio House Bill 443, aims to tackle what Chris Ferruso, legislative director for the Ohio chapter of the National Federation of Independent Business, said continues to be the No. 1 concern of his small-business members — health care coverage and provider mandate costs.

“In random and regular sampling of our membership since 1986, the cost of health insurance has been the top concern amongst our members.

In fact, 47.4% of our members indicate it is a critical concern,” Ferruso said of the Ohio NFIB membership, which on average employs 15 or fewer workers and has less than $2 mil-

Maintaining a fair tax system for smaller businesses is the goal of a bill in the Ohio Senate that creates a tax credit for pass-through entities subject to a recent federal cap on deductions for state and local taxes, or SALT. Ohio Senate Bill 246 is a Long direct response to the Tax Cuts and Jobs Act passed in 2017 by Congress, capping those SALT deductions at $10,000 in a move to limit the federal subsidization of high personal income taxes.

As a result of the SALT limits, C corporations continued to fully deduct these taxes, while pass-through Schiller businesses, like S corporations, partnerships and LLCs taxed as S corporations, could not. The loss of SALT deductions for pass-through businesses raised tax rates by an average 1.3% to 1.6%, Ferruso said.

These limits have been highly unpopular in business circles, so much so that in November 2020 the Internal Revenue Service was instructed

by President Donald Trump's administration to provide a framework for states to enact legislation similar to the Ohio bill as a workaround. Since then, nearly 20 states have enacted similar legislation and four others are currently considering such legislation.

“There is no good policy rational for this disparity,” according to testi-

mony by Greg Saul of the Ohio Society of CPAs before the Senate’s Ways and Means Committee at a hearing on the legislation in October.

According to the state tax statistics, there are nearly 250,000 Ohio businesses organized as pass-through entities, most of them smaller businesses, Saul pointed out.

The bill has had two committee hearings in October, and if the SALT cap is not revoked federally, a measure that is in some versions of the pending Build Back Better bill in the U.S. Senate, supporters hope it is passed and signed into law before the beginning of the next tax year. “We urge the General Assembly to enact this legislation by the end of 2021, ensuring that Ohio taxpayers can immediately benefit from reduced federal income taxes,” Saul said in his testimony to the Ways and Means Committee.

Impact on revenues Passing the Ohio law would level the playing field for smaller businesses, said Ferruso, who points out that three out of four NFIB members are structured as pass-through entities. “This bill puts Ohio on par with many other states who have recognized the importance of this deduc-

tion.”

Proponents of the bill say it is also “revenue neutral” for the state, insisting that the deduction only “impacts federal tax liability and should not result in revenue implications for the state,” said Ferruso.

Not everyone is in favor of a constant chipping away of tax revenue for the state in the form of business tax credits and deductions.

Zach Schiller, research director at Policy Matters Ohio, pushes back on the assertion that doing away with all these business tax liabilities is good for the state overall. According to the Ohio Legislative Service Commission’s fiscal analysis, the state’s general fund will lose $74.8 million in revenue in 2023 alone from passthrough taxes as a consequence of the reduction of that rate from 3.99% to 3%, a measure passed in the 202223 biennial budget.

Schiller points out that passthrough entities in Ohio do not have to pay tax on the first $250,000 of income, resulting in a “high number of those business owners” paying no Ohio income tax at all. “The notion that there is some great disparity is overblown,” he said.

“The vast bulk of the benefits for that bill will go to the wealthiest people in the state,” said Schiller.

“Why are we going to further unbalance the tax code in favor of the richest?”

Kim Palmer: kpalmer@crain.com, (216) 771-5384, @kimfouroffive

SUPPORTING SMALL BUSINESSES

GET ONE MONTH ON US TO HELP YOU TAKE CARE OF BUSINESS.

FREE! 1 MONTH OF SERVICE^ 200 Mbps BUSINESS INTERNET

49

$ ^

99

/mo when bundled for 12 mos*

NO CONTRACTS

19

BUSINESS VOICE

$

+

INSTALLATION

99

$

99

^

/mo when bundled with Internet for 12 mos**

^

|

NO HIDDEN FEES

|

NO ADDED TAXES

CLAIM YOUR SPECIAL OFFER

CALL 1-855-743-3182 or visit Spectrum.com/Business

Limited-time offer; subject to change. Qualified new business customers only. Must not have subscribed to applicable services w/ in the last 30 days & have no outstanding obligation to Charter. ^Offer expires 1/28/22. Free month offer will be applied as a credit by the 2nd month statement. Standard installation, taxes, fees, equipment and broadcast surcharge included. Excludes usage charges & Spectrum Mobile. Offer not available in all areas.*$49.99 Internet offer is for 12 mos. when bundled w/ TV or Voice & incl. Spectrum Business Internet starting speeds. Speed based on download speed on wired connection. Wireless speed may vary. Available speeds may vary by address. Spectrum Internet modem is req’d & included in price. **$19.99 Voice offer is for 12 mos. when bundled with Internet & incl. one business phone line w/ unlimited local & long distance w/ in the U.S., Puerto Rico, & Canada plus 2,000 long-distance minutes to Mexico. Includes phone taxes, charges and fees. Other telephone services may have corresponding taxes and rates. Standard pricing applies after promo. period. Installation & other equipment charges, taxes & fees may apply. Services subject to all applicable service terms & conditions, which are subject to change. Services & promo. offers not avail. in all areas. Restrictions apply. Call for details. © 2021 Charter Communications, Inc.

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 11

P010_P011_CL_20211206.indd 11

12/2/2021 10:05:03 AM

FOCUS | SMALL BUSINESS

LIKE WHOA!

“Cookie dough takes you back to a happy time in your life,” said Todd Goldstein, whose Whoa! Dough bars come in six flavors — chocolate chip, sugar cookie, sugar cookie with sprinkles, peanut butter, peanut butter chocolate chip and brownie-batter chocolate chip. | WHOA! DOUGH

Cleveland investor builds out healthy cookie-dough business

BY DOUGLAS J. GUTH

Remember being a kid and scooping cookie dough right from the bowl? Parental warnings about food poisoning aside, it’s likely that time hasn’t diluted those deliciously fond memories.

Chagrin Falls businessman Todd Goldstein has created a safer version of that nostalgic experience with Whoa! Dough, a line of healthy-yet-indulgent cookie-dough bars. Made with gluten-free certified ingredients, the bars are kosher and Non-GMO Project-certified.

“Cookie dough takes you back to a happy time in your life,” said Goldstein, whose product comes in six flavors — chocolate chip, sugar cookie, sugar cookie with sprinkles, peanut butter, peanut butter chocolate chip, and brownie-batter chocolate chip. “If I can take what people love eating and put it in bar form — and be healthier about it — there’s opportunity to grow a business around (that concept).”

In early November, Whoa! Dough announced its introduction into181 Giant Eagle locations nationwide.

The brand can also be found at Heinen’s Fine Foods, Tops, Dave’s Market, the Paper Source paper products chain and Chicago’s Valli Produce. Healthy snackers can also buy Goldstein’s wares on Amazon, while Whoa! Dough will launch at Earth Fare stores in 2022.

Overall sales for the new business have been strong, growing five times over Goldstein’s initial projection for 2021. The newbie food entrepreneur points to a marketplace craving a healthy, low-calorie snack that doesn’t sacrifice taste or quality.

“We’re trying to carve our own niche,” Goldstein said. “We’re a bar company, but want to be a cookie dough company.”

A delicious idea The idea for Whoa! Dough had been percolating since 2019, though the startup was officially introduced

in November 2020. The problem the business is tackling has a longer history, stemming from the severe gluten intolerance that Goldstein was diagnosed with a decade ago.

Two of Goldstein’s three young boys also have gluten allergies, further catalyzing a concept built on the

owner ’s business management education from Johnson & Wales University and the 2008 founding of LaunchHouse, a co-working space and entrepreneur community.

A career of transforming dreams into working businesses informed

the development of Whoa!

Dough, noted Goldstein.

Though self-funded at first, the company now has an investor alongside meticulous market research into the approximately 50 million Americans whose food allergies make Whoa! Dough a welcome treat.

Goldstein’s business acumen didn’t prevent him from making a few mistakes early on. For instance, he moved production from California to

You sity on t rupt Who prov “W cust ners revi “Wh go kne mar whe ing W cism like than Gold expe his rant adv cust go-t “Th at L invo pren Gold ness chal uct also go.”

Spr

H earl sion with bou grow viru wer of h Len groc

Crawford Hall

Opening in 2024

Learn more at kent.edu/crawford

“UP LOO OW TH PO

— Ja 12 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P012_P013_CL_20211206.indd 12

12/2/2021 9:49:38 AM

stor re50 lerome

men few he a to

FOCUS | SMALL BUSINESS

“Whoa! Dough was certainly interesting, because it was a trending product that’s healthy, locally made and tastes good,” said Lentz. “It’s got an impressive flavor profile with good Youngstown upon realizing the neces- ingredients. Often you’ll see comsity of testing and enhancing products panies add fillers to make their on the fly. A 2019 soft launch was inter- product appealing, but Todd alrupted by the pandemic, allowing ready had quality ingredients.”

Jannah Jablonowski, public relaWhoa! Dough to consider further imtions specialist at Giant Eagle, said provements.

“We had to pause and listen to our her team was impressed both by the product and the innocustomers and retail partvation behind its creation. ners, and analyze Amazon “Upon recognizing a reviews,” Goldstein said. gap in the market when “When we saw those stars looking for items to meet go from five to one, we the dietary needs of his knew we’d missed the own family, Todd ended mark. I knew it for sure up developing a product when my kids stopped eatthat resonates with a siging the product altogether.” nificant consumer popuWhoa! Dough met critilation,” said Jablonowski. cisms that its bars felt more Lentz “We are thrilled to work like a meal replacement with a Cleveland-based than a tasty treat. Although brand that helps us to proGoldstein has food industry vide a delicious bar opexperience harking back to tion for guests with rehis grandfather’s restaustrictive dietary needs or rant, he received priceless specific ingredient preferadvice from mentors on ences.” customer acquisition and a Goldstein and his team go-to-market strategy. of one full-time and four “Throughout my career part-time employees are at LaunchHouse, I’ve been Jablonowski far from satisfied by the involved with other entrecompany’s early success. preneurial opportunities,” Goldstein said. “But building a busi- The coming months will find Whoa! ness 100% from scratch has been Dough hitting farmers markets and challenging. Bringing along a prod- trade shows, coupled with an inuct people like is rewarding, but I creased social media presence. Its also recognize we have a long way to founder, meanwhile, is happy to provide a flavorful dose of “rememgo.” ber when” goodness to the community.

Spreading the goodness “The product we started with is Heinen’s was one of Goldstein’s not the one we launched nationalGoldstein said. “Products early distributors, born from a mis- ly,” sion of supporting local businesses evolve, and you’ve got to be willing with unique products. While store- to take those chances. For us, it’s bought cookie dough became a fast about making people aware of the growing market during the corona- brand, and building out both our virus lockdown period, consumers direct-to-consumer and retail footweren’t exactly blessed with a raft print.” of healthy options, said Heather Lentz, director of wellness for the Contact Douglas J. Guth: clbfreelancer@crain.com grocery chain.

“UPON RECOGNIZING A GAP IN THE MARKET WHEN LOOKING FOR ITEMS TO MEET THE DIETARY NEEDS OF HIS OWN FAMILY, TODD ENDED UP DEVELOPING A PRODUCT THAT RESONATES WITH A SIGNIFICANT CONSUMER POPULATION.” — Jannah Jablonowski, public relations specialist at Giant Eagle

P012_P013_CL_20211206.indd 13

In early November, Whoa! Dough creator Todd Goldstein announced the product’s introduction into 181 Giant Eagle locations nationwide. | WHOA! DOUGH

Give our youth the future they deserve. youthopportunities.org

Current Job CEO, Greater Cleveland Partnership

First Job Phonebook Delivery

“

I delivered yellow pages and white pages all over Geauga County and got paid by each book delivered. The lesson that I learned was that incentives really matter. When you get paid by the book, there’s a sense of urgency to deliver as many books as possible, as quickly as possible.

Baiju Shah DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 13

12/2/2021 9:50:12 AM

FOCUS | SMALL BUSINESS

Northeast Ohio is home to three uBreakiFix franchise locations, which are slated to be renamed Asurion Tech Repair & Solutions next year. | UBREAKIFIX

uBreakiFix opens two Northeast Ohio locations amid rebranding

IN CASE OF CYBER ATTACK...

BY JUDY STRINGER

FULL SERVICE

INCIDENT RESPONSE Command & Control Digital Forensics & Investigations Disaster Recovery & Remediation Services Crisis Management

IR911.com CYBER ATTACK HOTLINE:

www.FortressSRM.com

SALT • SALT • SALT

Water Softener • Industrial • Food • Ice Melt • Sea Salt

Call For Pricing!!

Minimum Delivery: 1 Pallet

MEDINA, OH

1-800-547-1538 Salt Distributors Since 1966 www.saltdistributormedinaoh.com

Tech repair shop uBreakiFix added to its Northeast Ohio portfolio recently, opening locations on Kent Road in Stow and on Arlington Road in Akron, as the Orlando, Florida-based brand undergoes a reboot of its own.

UBreakiFix stores offer repairs for a variety of consumer electronics from smartphones, tablets and computers to game consoles, smart speakers and drones, district manager Craig Wooton said in an email.

“If your phone hits the asphalt, or if you spill coffee across your laptop keyboard, even if your tech is just running slowly or glitching, our professionally trained repair experts are here to help,” he said.

In addition to the two new Summit County units, uBreakiFix has a store inside the Mentor Avenue Staples in Mentor.

Wooton said mobile service is also available locally through the Akron location, which covers a 100mile radius from that store.

The 12-year-old franchise operator has seen impressive growth, doubling over the last five Barbuto years. There are currently more than 740 uBreakiFix locations across the U.S. and Canada, up from about 350 stores in 2017, according to its 2020 Franchise Disclosure Document. In addition, it offers nearly 600 mobile repair vehicles across the U.S. CEO Dave Barbuto, also responding via email, said growth in the device repair market reflects an increase in “dependence on personal technology” broadly. But he credited COVID-19 for kicking device repair demand “into overdrive” by making people more reliant on technology for work, education and even shopping and socializing.

“Now, when something breaks or won’t hold a charge or won’t stay connected, it’s more than an incon-

venience — it could mean missing a big meeting or failing to submit homework or missing quality time with loved ones,” Barbuto said.

UBreakiFix added 67 new locations in 2020 and 69 in the first six months of this year. According to its latest disclosure document, franchise owners averaged just over $426,000 in the third year of operation and with roughly $277,000 in gross profits. Owners invest between $98,000 and $303,000 to get a franchise unit up and running.

Screen savers UBreakiFix dates back to 2009, when co-founder Justin Wetherill dopped and shattered his smartphone and saw an opportunity to launch a convenient and affordable repair option. Wetherill collaborated with friends David Reiff and Eddie Trujillo to open an Orlando repair shop, and the partners grew the business to over 500 locations, including about two dozen corporate-owned stores, before selling it to Asurion, a Nashville-based consumer electronics insurer, in 2019.

In September, Asurion announced that all U.S. repair sites would be renamed Asurion Tech Repair & Solutions. The transition is expected to happen next year, Barbuto said.

While service has expanded to cover a range of consumer devices over the years, cellphones remain a key part of the business — and for good reason. Data compiled by industry watcher IBIS World suggests Americans will spend $4 billion in 2021 alone on cellphone repairs.

Increasing demand for mobile internet access means greater demand for cellphone repairs, IBIS analysts said in the April 2021 re-

“NOW, WHEN SOMETHING BREAKS OR WON’T HOLD A CHARGE OR WON’T STAY CONNECTED, IT’S MORE THAN AN INCONVENIENCE — IT COULD MEAN MISSING A BIG MEETING OR FAILING TO SUBMIT HOMEWORK OR MISSING QUALITY TIME WITH LOVED ONES.” — Dave Barbuto, uBreakiFix CEO

port, “because internet-enabled smartphones are more expensive than basic-feature phones and are, therefore, more likely to be repaired instead of replaced.”

Smartphones also have fragile touch screens and other breakable parts that facilitate more repair services, according to the report.

A 2019 survey of 2,000 Americans found that 1 in 3 respondents had a crack in their cellphone’s screen.

The survey, conducted by OnePoll on behalf of PhoneLoop, also revealed that the average person drops their phone four times a week.

In recent years, escalating device costs and a growing concern about electronic waste has spurred the global “right to repair” movement, which seeks to ensure consumers can repair a broken product rather than be forced to fix it.

Barbuto said uBreakiFix does not have a formal position on right-torepair legislation but does “believe in repair as a favorable option for both people and planet.”

“And we have successfully partnered with several manufacturers to create repair solutions for customers,” he said.

Contact Judy Stringer: clbfreelancer@crain.com

14 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P014_CL_20211206.indd 14 Grimm Winter mix 2x4.33.indd 1

9/22/2020 1:14:55 PM

12/2/2021 9:48:39 AM

WEBCAST RECAP: The Whole Package: Small Business and Total Rewards

SPONSORED CONTENT

PRESENTED BY DELTA DENTAL OF OHIO, PRODUCED BY CRAIN’S CONTENT STUDIO - CLEVELAND

Employee wellness should drive holistic compensation approaches

BY JUDY STRINGER, CRAIN’S CONTENT STUDIO - CLEVELAND

MEET THE PANELISTS

G

reat Lakes Cheese Company’s newly opened wellness center – part of an expanded manufacturing site in Hiram – is one clear signal of the privatelyrun business’s commitment to the “overall health and well-being” of its 1,000-person Cleveland area workforce, according to human resources vice president Mara Kamat.

The wellness center includes medical facilities with an on-site nurse practitioner, in addition to a state-ofthe-art fitness center and walking trail.

“The question we’re asking ourselves is, ‘How do we replicate that model on smaller scales at our other sites across the country?’” Kamat said.

“So, if (employees) have a cough, if they have a sore throat, if they’re just not feeling well, they can get that taken care of at work or they can get referred the types of specialists that are meaningful for them.”

Great Lakes Cheese, however, is not alone. Forward-thinking companies across the country are designing and rolling out enhanced benefits, hybrid work schedules and added workplace amenities in a bid to stay competitive in the talent market.

“People have different motivations for joining companies, and it’s not just to earn a paycheck anymore,” Kamat said.

The Hiram-based executive was among a handful of local leaders who gathered virtually on Nov. 15 to discuss how more holistic approaches to employee benefits – sometimes referred to as “total rewards” – can help recruit and retain much-needed talent. Moderated by Susan Gisholt, manager of talent strategies for Delta Dental of Michigan, Ohio and Indiana, the hour-long conversation explored the importance of workforce engagement, comprehensive wellness offerings, flexible work environments and more.

“If we learned anything throughout this pandemic, it’s that things are

Susan Gisholt

Manager of talent strategies, Delta Dental of Michigan, Ohio and Indiana

Dr. Françoise Adan Chief whole health and well-being officer, University Hospitals

constantly changing and we have to be flexible,” said Liz Fischer, vice president of human resources for MarshBerry, a Woodmere-based financial services firm. “We have to do whatever we can do to continuously adapt to what our employees need.”

As multi-faceted individuals, employees require a comprehensive approach to wellness that takes care of the whole person, from medical and dental needs to mental health

Liz Fischer

Vice president, human resources, MarshBerry

workforce, particularly in regard to new programming that is based on employee feedback or benefits already offered by the company.

Andre Lukez, chief consulting officer with The Fedeli Group, said many employees aren’t familiar with their compensation packages and “are surprised when they do learn that they’re actually pretty good.”

“I also think employers can serve a larger role in communicating to

The panelists cited “whole person” health offerings and flexible scheduling as two trending benefit categories that were accelerated by the pandemic and will continue to be competitive differentiators moving forward. considerations, personal fulfillment and more. Understanding those needs begins with listening closely to your workforce, according to panelists.

Fischer said MarshBerry typically conducts two annual employee surveys, including a wellness survey that is used to shape future benefits and programming, but also polled employees more often in 2020 concerning issues like returning to the office.

Dr. Françoise Adan, chief whole health and well-being officer at University Hospitals and director of the UH Connor Integrative Health Network, said feedback channels that enable “bi-lateral conversations” create a safe space for employees to share what they need and help organizations “learn about (their) blind spots.”

It’s impossible, the panelists agreed, to over-communicate with your

Andre Lukez

Chief consulting officer, The Fedeli Group

(EAP) solutions, companies could offer family planning and student loan resources, for example, or personal and professional growth opportunities.

“Even connecting them up with outside resources is really helping them to be more successful and to better manage their life, bringing peace of mind for them and their family,” Gisholt said.

Kamat added that walking trails near the office and/or break rooms with healthy snacks and lots of natural light are other examples of impactful wellness support that fall outside of what most people consider employee benefits.

their employee base about their retirement programs and how they can accumulate wealth (in the) long run,” said Lukez, who heads the Independence insurance brokerage’s employee benefits division.

Flexible work arrangements should also be a top consideration, according to the panel of HR executives, but must be tailored to the organization’s needs and goals. Kamat noted a recent Gartner survey in which 71% of respondents prioritized worklife flexibility options compared to just 21% who prioritized increased compensation.

COVID STRONGHOLDS The panelists cited “whole person” health offerings and flexible scheduling as two trending benefit categories that were accelerated by the pandemic and will continue to be competitive differentiators moving forward.

Lukez said while many small and medium-sized businesses have been reluctant so far, embracing remote work would allow them “to attract talent, not just in their local community, but across the country” and “expand their intellectual capital to scale.”

UH’s Adan said corporate wellness efforts “only focused on physical metrics” fail to recognize “what really matters to the employees.” Such programs should address “the mental, the emotional, the spiritual and even the financial” needs of employees, she said.

He and his peers also discussed the challenges of remote working arrangements. Lukez worried about “the transfer of knowledge,” in particular.

Along with more conventional employee assistance program

“I find that people who have a lot of experience in our business can work almost exclusively from home and don’t miss a beat, but it’s the younger generation coming in (that poses the

This advertising-supported section/feature is produced by Crain’s Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain’s Content Studio content.

Mara Kamat

Vice president, human resources, Great Lakes Cheese Company

challenge),” he said. “How do they get trained in our business?”

Fischer said MarshBerry’s company culture and employee engagement relies heavily on being physically present in the office, although staff is allowed to work remotely “a couple of days a week.”

“One thing we implemented that has been successful is something we’re referring to as a collaboration day. So, we know which day of the week that a lot of our people are in and that is a kind of collaboration day, and we’ll provide lunch for the whole office,” she said. “I am mildly surprised how far a free lunch goes.”

FINDING YOUR VALUE PROPOSITION Kamat and Fischer pointed to employee stock ownership plans as part of their companies’ competitive labor advantage. Several leaders also mentioned how communicating the company’s purpose and a clear “line of sight” between individual employee contributions and that higher purpose is an important weapon in the war for talent.

No two companies are the same, they said, and no two total rewards strategies will be either.

“There’s no one size (that) fits all,” Kamat said. “Step back, listen to your employees and figure out how you can create a meaningful marketplace approach that still allows your business to be financially competitive and also a destination for employees.”

FOCUS | SMALL BUSINESS

INVESTING IN PEOPLE

Small businesses get creative to compete on wages, benefits

BY JAY DAVIS/ CRAIN'S DETROIT BUSINESS

Molly Mitchell went into the restaurant business with an interesting perspective.

The owner and co-founder of Rose's Fine Food and Wine in Detroit's East Jefferson area worked as a "back of the house" employee at restaurants in her native Howell, Michigan, Detroit and other spots.

She watched as front of the house staff — waitstaff, bartenders — collected all of the tips on top of their hourly wage, while those behind the scenes got no extra pay.

Mitchell vowed to run her business differently when she opened it in 2014.

"I've just worked in the industry for a long time," said Mitchell, who opened the restaurant with her cousin, now a real estate agent. "I wasn't coming into the industry looking at it as a business owner. I just wanted to build a strong team and have a place where everybody is working hard to produce good food.

"I just didn't want to start a business based on inequities, where there would be a larger income gap between myself and the staff, and the

staff and the managers, as the business became more successful. It takes so much time and skill to learn to do this well, and I wanted longterm employees."

Small businesses often do not offer competitive wages and benefits due to a lack of resources and information. However, those that do see major benefits, such as higher employee retention rates, increased productivity and a boost in morale.

For all of those reasons, Mitchell has always offered competitive wages at her restaurant, which specializes in sandwiches, salads, housemade desserts, plus to-go beer and wine. Hourly pay has risen from $10 when the restaurant opened to $15 currently. A tip-share program, in which staffers evenly split gratuities, has each of Mitchell's six employees earning around $20 an hour. Employees sign a document that essentially frees Mitchell from any issues related to possible inequity.

Initially, Rose's Fine Food and Wine operated as a tipless business, but Mitchell decided she didn't want to deny customers the opportunity to reward the diner's employees for their hard work and attentiveness.

Rose's employees get paid holidays

off and a week of paid vacation each year, but Mitchell said she doesn't offer a benefits package because the cost to employees would be too high.

What Rose's is doing significantly improves a small-business owner's ability to attract and retain talent, according to Carla McKelvey, Professional and Industrial vice president and North Market lead at Troy, Michigan-based Kelly Services.

Employees who feel they're compensated fairly are more likely to become brand ambassadors for the business and stewards for employee referrals, said McKelvey, who oversees Kelly's commercial staffing operations in the northern United States and Canada.

"An engaged and happy workforce will also be more productive," she said. "It's important to point out, though, that wages and benefits are only part of what make your employer value proposition — your company's set of benefits and core beliefs that define your brand as an employer."

'Long-term plans' Storch Magnetics president Matt Carr agrees with McKelvey that

Rose Mitc A for Mitc wou

DAVIS

mon T wag incl disa er-m will C gan desi and to m indu nes doll "S hav bur doll you prod enc hav ing. com that sion mak road C help bus pan F visio emp laun prod desi the "E stal nial ble, that han

Join Ohio’s business leadership community at the 2021 Weatherhead 100 virtual awards ceremony, the annual celebration of the fastest-growing businesses in Northeast Ohio.

The Weatherhead 100 was established to celebrate the spirit of entrepreneurship and to recognize the elite companies in our region.

This year’s winners were evaluated on revenue growth from 2016 to 2020.

The winners will be announced during a virtual event on December 9 and will be listed in a special issue of Crain’s Cleveland Business.

Register for the virtual event by visiting weatherhead.case.edu/events/weatherhead100/ Presented by

December 9, 2021 VIRTUAL EVENT 4–5 P.M. For any questions contact Molly Smith at 216.368.0359 or weatherhead100@case.edu

Silver

Hosted by

Media Sponsor

Sapphire

16 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P016_P017_CL_20211206.indd 16

12/2/2021 9:44:02 AM

FOCUS | SMALL BUSINESS

Rose’s Fine Food and Wine owner Molly Mitchell opened the restaurant in 2014.

A former restaurant worker herself, Mitchell wanted to run a business that would offer staff financial security. | JAY DAVIS/CRAIN’S DETROIT BUSINESS

money can't be the end-all, be-all.

The company offers competitive wages and a benefits package that includes life insurance, short-term disability pay and an employer-matching 401(k) plan. Soon it will add a profit-sharing plan.

Carr, whose Livonia, Michigan-based company engineers, designs and supplies permanent and electromagnetic technologies to manufacturing and processing industries, believes small-business owners who get caught up on dollar figures are short-sighted.

"Some business owners don't have a choice. If you're running a burger joint, you have to put that dollar figure first," he said. "If you're a company that can alter its product line and make a difference, you can hire people who have a passion for what you're doing. The salary might not be as competitive in the beginning, but that person sees the long-term vision and plans, and knows they'll make more money down the road."

Carr said that outlook has helped Storch, which has been in business since 1952, during the pandemic.

For example, Storch created a vision board to gather feedback on employees' goals. When it launched a new brand of filter products, it tapped into workers' desire to have a positive impact on the environment.

"Every time the filters are installed at a business, the testimonials that come back are incredible," Carr said. "Our staff made that product with their own two hands. They saw something in the

product and helped us produce it.

It's going to pay dividends for all of us.

"We know everybody is having issues right now with hiring. It's hard to find good help. But if you hire somebody at $18 an hour who took the job because of a $2,000 sign-on bonus, when they get that bonus, they might leave because they didn't take the job for anything other than the money."

McKelvey agrees with Carr, saying the pandemic has pushed employees to rethink work.

"Many more people want their work to better align with their personal lives and values," the Kelly executive said. "Today, more than ever, workers care about fulfilling work, a company's vision or product, how business owners treat their employees, and a business' commitment to diversity, equity and inclusion."

Offering competitive pay and core benefits like health insurance and paid time off are a given, McKelvey said. Other perks, such as product discounts, flex time, mental health days and opportunities for growth, can make a business stand out more, she said.

Opportunities for growth are what make Detroit jeweler Rebel Nell attractive for prospective hires.

Rebel Nell, established by Amy Peterson in 2013, serves as a social enterprise dedicated to providing equitable opportunity and support for women with barriers to employment, such as previous incarceration or homelessness.

Rebel Nell's goal, Peterson said, is for the business — which repurposes materials like graffiti into wearable pieces — to serve as a transitional employer, offering work to people as they prepare to move into jobs and careers more in line with their interests, and leading them on a path of self-sufficiency.

In addition to starting wages of $12-$15 an hour, Rebel Nell offers pay increases every six months.

The jewelry maker also offers support that includes financial education, housing assistance, legal aid, child care assistance, interest-free microloans, a flexible work environment and career support.

"Our focus has always been on people," said Peterson, who has 12 full-time employees. "If you don't focus on the people who support you, then you have no business.

The people are way more important than the bottom line of a capitalistic marketplace."

Since 2013, Peterson has hired 34 women from shelters and graduated 22 into the traditional workforce. Most employees stay with Rebel Nell for two years before moving on.

Even with what amounts to temporary employment, Peterson has no problem sacrificing revenue if it means she sees a return on investment in the people Rebel Nell serves.

"We know we could have everything produced overseas and have little impact on our community but our margins would be very high," said Peterson, whose items are priced $3-$205. "That's not why we started Rebel Nell. We're a social enterprise investing in our people and the community. To me, there is a value to that. We like to think we have two types of cus-

tomers: the women we serve and the people who purchase our products."

Mitchell feels the same about her employees.

Rose's staff has dropped from 12 to six since the start of the pandemic, which Mitchell said has allowed her to pay her employees better. It's also helped create a stronger culture in which everyone on staff wants to produce the highest-quality dishes and service.

Rose's also cut its indoor tables from eight to two to go along with counter seating.

"Running a place where I feel I'm an equal with the people who work here is important to me," Mitchell said. "I listen to the people who are actually doing the work. If someone says a part of the job is hard, I try to make it easier.

I'm trying to make this a nice place to work. Yeah, it's a job, but I want people to feel they have autonomy and a voice. And I pay them well."

This month, Storch will for the first time implement a profit-sharing program for the company's 30 full-time staffers, which is used as a catalyst for new hires and employee retention. The multi-tiered system will be based on employee contributions and impact on the company, Carr said, such as someone working late or on weekends.

"I think it's a game changer," said Carr, whose company is targeting $7 million in sales this year.

"The people we hire come in at a higher wage and they're super intelligent. We're going to make their roles more autonomous. We've built a foundation, and we believe we have the potential to expand our market share. And that doesn't happen without good people."

Morale can be a game changer, too.

Mitchell said competitive wages, along with other perks, can ensure staffers feel good about going to work.

"We've all had our fair share of jobs," the restaurant owner said.

"It feels good to get a raise. In food service, especially, it feels good to know you can live on one job.

"Imagine working and not knowing if you can pay bills. Everybody needs a stable base. People in a lot of industries, especially the restaurant industry, are good at looking at their numbers because they have to be. So many people have left this industry. Going forward, restaurant owners are going to have to place a higher value on staff."

Rebel Nell's Peterson understands the climate, with supply chain issues and the pandemic continuing to rage on. It can be costly for a small business to offer competitive wages and benefits, but many find it's worth it.

"Support is dwindling and it's even tougher to be a small-business owner," Peterson said. "If you're able to invest in your people, you will have greater support for the long run.

"Even if it's slowly adding one additional benefit a year or giving more time off. Listen to your staff and ask them what's important to them, then work on a plan to implement those things. It's also important to be open and honest with (staff ) about whatever situation the business is in. Earning trust in your employer is important in today's workforce."

Innovative solutions for your business.

Our Treasury Management services are designed with you in mind. With fraud protection to cash flow management solutions and more, let us provide the technology and equipment to help your business operate on a new level.

Let’s talk solutions today.

Jennifer Bidlingmyer

SVP, Treasury Management Sales Director 330-673-8610

All credit services are subject to credit approval.  YourPremierBank.com  Member FDIC

CRAIN’S THOUGHT LEADER FORUM Small Business and Entrepreneurship ISSUE: JAN. 17, 2022 | CLOSE: DEC. 13 | CONTACT: astoessel@crain.com

Here for you.

Here for life.

www.ncafinancial.com (440) 473-1115 Securities offered through Royal Alliance Associates, Inc. (RAA), Member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA does not provide tax or legal advice. Investment advisory services offered through NCA Financial Planners. 6095 Parkland Blvd., #210 Mayfield Hts., OH 44124 F: 440-473-0186 DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 17

CRAIN'S LIST | HOSPITALS Ranked by 2020 net patient revenue NET PATIENT REVENUE (MILLIONS) RANK

HOSPITAL

2020

2019

% CHANGE

FTE STAFF 9-1-2021

STAFFED BEDS

YEAR FOUNDED

PARENT ORGANIZATION

TOP EXECUTIVE

1

CLEVELAND CLINIC — MAIN CAMPUS 9500 Euclid Ave., Cleveland 44195 216-444-2200/clevelandclinic.org

$5,241.7

$5,566.4

-5.8%

33,740

1,298

1921

Cleveland Clinic Health System

Tomislav "Tom" Mihaljevic president, CEO

2

UNIVERSITY HOSPITALS CLEVELAND MEDICAL CENTER 11100 Euclid Ave., Cleveland 44106 216-844-1000/uhhospitals.org

$2,765.4

$2,677.4

3.3%

17,076

912

1866

University Hospitals

Cliff A. Megerian CEO, University Hospitals

3

VA NORTHEAST OHIO HEALTHCARE SYSTEM 10701 East Blvd., Cleveland 44106 216-791-3800/cleveland.va.gov

$1,328.1 1

$1,261.9 1

5.2%

5,009

616

1946

Department of Veterans Affairs

Jill K. Dietrich executive director, CEO

4

METROHEALTH MAIN CAMPUS MEDICAL CENTER 2500 MetroHealth Drive, Cleveland 44109 216-778-7800/metrohealth.org

$1,057.1

$1,064.1

-0.7%

7,221

449

1837

The MetroHealth System

Akram Boutros president, CEO

5

AKRON CHILDREN'S HOSPITAL One Perkins Square, Akron 44308 330-543-1000/akronchildrens.org

$848.6

$915.3

-7.3%

4,837

447

1890

Children's Hospital Medical Center of Akron

Christopher Gessner president, CEO

6

SUMMA HEALTH SYSTEM — AKRON AND ST. THOMAS CAMPUSES 141 N. Forge St., Akron 44304 330-375-3000/summahealth.org

$687.5

$708.0

-2.9%

3,540

594

1892

Summa Health System

Cliff Deveny president and CEO - Summa Health System

7

CLEVELAND CLINIC AKRON GENERAL HOSPITAL One Akron General Ave., Akron 44307 330-344-6000/akrongeneral.org

$649.5

$634.6

2.3%

4,333

449

1914

Cleveland Clinic Health System

Brian Harte president

8

AULTMAN HOSPITAL 2600 Sixth St. S.W., Canton 44710 330-452-9911/aultman.org

$529.0 2

$470.4

12.5%

3,042 2

476 2

1892

Aultman Health Foundation

Tony Snyder CEO

9

FAIRVIEW HOSPITAL 18101 Lorain Ave., Cleveland 44111 216-476-7000/fairviewhospital.org

$515.3

$507.0

1.6%

2,381

465

1892

Cleveland Clinic Health System

Neil P. Smith president

10

HILLCREST HOSPITAL 6780 Mayfield Road, Mayfield Heights 44124 440-312-4500/hillcresthospital.org

$480.8

$494.5

-2.8%

2,140

448

1968

Cleveland Clinic Health System

Richard D. Parker president

11

MERCY HEALTH — ST. ELIZABETH YOUNGSTOWN HOSPITAL 1044 Belmont Ave., Youngstown 44501 330-746-7211/mercy.com

$398.2 2

$388.6

2.5%

1,779 2

403 2

1911

Bon Secours Mercy Health

John Luellen Youngstown market president

12

SOUTHWEST GENERAL 18697 Bagley Road, Middleburg Heights 44130 440-816-8000/swgeneral.com

$379.3

$395.0

-4%

1,874

244

1920

Southwest General, partnering with University Hospitals

William A. Young Jr. president, CEO

13

CLEVELAND CLINIC MERCY HOSPITAL 1320 Mercy Drive N.W., Canton 44708 330-489-1000/cantonmercy.org

$320.5

$351.2 2

-8.7%

2,192

337

1908

Cleveland Clinic Health System

Timothy Crone president

14

FIRELANDS REGIONAL MEDICAL CENTER 1111 Hayes Ave., Sandusky 44870 419-557-7400/firelands.com

$245.4

$265.7

-7.6%

1,685

255

1876

Firelands Health

Jeremy Normington-Slay president, CEO

15

MERCY HEALTH — ST. ELIZABETH BOARDMAN HOSPITAL 8401 Market St., Boardman 44512 330-729-2929/mercy.com

$216.9 2

$223.1

-2.8%

819 2

206 2

2007

Bon Secours Mercy Health

Eugenia "Genie" Aubel president

16

UNIVERSITY HOSPITALS AHUJA MEDICAL CENTER 3999 Richmond Road, Beachwood 44122 216-593-5500/uhahuja.org

$212.8

$220.9

-3.7%

910

147

2010

University Hospitals

Alan J. Papa chief operating officer, East Market and UH Ahuja Medical Center

17

UNIVERSITY HOSPITALS ELYRIA MEDICAL CENTER 630 E. River St., Elyria 44035 440-329-7500/uhelyria.org

$196.7

$203.3

-3.2%

1,067

253

1908

University Hospitals

Todd R. Harford chief operating officer, UH Elyria Medical Center

18

MERCY HEALTH — LORAIN HOSPITAL 3700 Kolbe Road, Lorain 44053 440-960-4000/mercy.com

$194.3 2

$199.2

-2.5%

864 2

232 2

1892

Bon Secours Mercy Health

Edwin M. Oley Lorain market president (outgoing); John Luellen Lorain market president (incoming) 3

19

UNIVERSITY HOSPITALS LAKE WEST MEDICAL CENTER 36000 Euclid Ave., Willoughby 44094 440-953-9600/lakehealth.org

$178.1 4

$193.2 4

-7.9%

1,008

267

1961

University Hospitals

Cynthia Moore-Hardy president and CEO, UH Lake

20

UNIVERSITY HOSPITALS TRIPOINT MEDICAL CENTER 7590 Auburn Road, Concord Township 44077 440-375-8100/lakehealth.org

$175.5 4

$190.5 4

-7.9%

994

135

2009

University Hospitals

Cynthia Moore-Hardy president and CEO, UH Lake

21

MERCY HEALTH — ST. JOSEPH WARREN HOSPITAL 667 Eastland Ave. S.W., Warren 44484 330-841-4000/mercy.com

$167.6 2

$171.1

-2%

661 2

127 2

1924

Bon Secours Mercy Health

Kathy Cook president 5

22

UNIVERSITY HOSPITALS PARMA MEDICAL CENTER 7007 Powers Blvd., Parma 44129 440-743-3000/uhparma.org

$163.1

$183.2

-10.9%

936

193

1961

University Hospitals

James Hill chief operating officer, chief medical officer

23

SUMMA HEALTH SYSTEM — BARBERTON CAMPUS 155 Fifth St. N.E., Barberton 44203 330-615-3000/summahealth.org

$154.8

$168.7

-8.2%

694

129

1915

Summa Health System

Michael Hughes president

24

UNIVERSITY HOSPITALS ST. JOHN MEDICAL CENTER 29000 Center Ridge Road, Westlake 44145 440-835-8000/uhstjohn.org

$154.6

$158.1

-2.2%

813

170

1981

University Hospitals

Jonathan Sague chief operating officer, UH St. John Medical Center

25

UNIVERSITY HOSPITALS GEAUGA MEDICAL CENTER 13207 Ravenna Road, Chardon 44024 440-285-6000/uhgeauga.org

$151.1

$182.5

-17.2%

727

158

1952

University Hospitals

Jason Glowczewski chief operating officer, UH Geauga Medical Center

Research by Chuck Soder (csoder@crain.com) | Revenue and employment figures often include outpatient clinics and other offsite locations affiliated with the hospital. Information is from the hospitals unless footnoted. NOTES: 1. Total operating budget for all locations in Northeast Ohio; includes flat annual per patient payments. 2. From the American Hospital Directory, ahd.com. Employee numbers represent total employees, not FTEs, and are accurate as of the hospital's most recent Medicare Cost Report. Staffed beds equals the number of total complex beds. 3. Oley is scheduled to retire in January 2022, at which point Luellen, who also serves as Mercy Health's Youngstown market president, will become Lorain market president as well. 4. These figures predate Lake Health becoming part of UH in April 2021. 2019 figures are estimates calculated from Lake Health's overall net patient revenue; TriPoint Medical Center's estimate includes revenue from all offsite locations. 5. Cook is scheduled to retire in April 2022 as which point Charlotte Wray will become president.

Get all 53 hospitals and more executives in Excel format. Become a Data Member: CrainsCleveland.com/data 18 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P018_CL_20211206.indd 18

12/3/2021 9:03:46 AM

DATA SCOOP

Cleveland Clinic, UH now account for most hospitals on Crain’s list

BY CHUCK SODER

For the first time, the Cleveland Clinic and University Hospitals now own more than half of the top 25 facilities on Crain’s annual Hospitals list.

The scales tipped following a few mergers during the first half of 2021.

Lake Health joined UH in April. It was UH’s biggest addition to date and brought three hospitals under its umbrella: UH Lake West Medical Center (No. 19 on the list), UH Tripoint Medical Center (No. 20) and UH Beach-

wood Medical Center (No. 45).

Likewise, Mercy Medical Center in Canton joined the Cleveland Clinic in February. That facility, No. 13 on the list, now goes by Cleveland Clinic Mercy Hospital.

The Clinic and UH together oversee 29 of the 53 hospitals on the full digital list, which includes the vast majority of hospitals in Northeast Ohio.

Hospitals on the list took a financial hit in 2020 but weren’t derailed by the COVID-19 pandemic. For instance, net patient income for all 53

hospitals was $19.6 billion in 2020, down 2.3% from 2019 — a rare decline. Operating income for the group, which is typically a negative figure, fell from -$697 million in 2019 to -$1.07 billion in 2020, but net income fell by less than 1%, according to additional data available in the full Excel version of the list (much of that data and a handful of figures on the printed list are pulled from the American Hospital Directory, AHD.com; other data was submitted to Crain’s by the hospitals).

Many hospital systems seem to

have gotten through 2020 OK, all things considering. The Ohio Hospital Association reported that OHA members eked out a 0.6% operating margin in 2020. Both the Cleveland Clinic and University Hospitals issued annual reports showing that they’d weathered the year fairly well, despite a sharp drop in patient revenue at the start of the pandemic and increased expenses. For instance, UH chief financial officer Mike Szubski told Crain’s in April that the system’s recovery was “nothing short of amazing.”

Health Care Directory is here This week Crain’s also published the full Excel version of its annual Health Care Directory. It includes 271 health care-related organizations of all types — large and small, for profit and nonprofit. It won’t appear in print until we publish our Book of Lists just after Christmas, but to get the Excel version now visit CrainsCleveland.com/data.

Chuck Soder: csoder@crain.com, (216) 771-5374, @ChuckSoder

AKRON

Medical real estate garners national attention from buyers, brokers

BY DAN SHINGLER

The Akron area’s strong health care industry is attracting some national attention, and more appears to be on the way, as national investors target medical real estate in and around the city.

Fairfield Asset Advisors, a Denver-based real estate advisory firm that works with the owners of medical facilities and buyer/investors across the U.S., says it has found fertile ground for its work in town and has completed a string of sales it brokered around Akron.

“Akron, Ohio, as you’ve seen, has certainly been good for us,” said Ben Whitney, senior analyst for Fairfield and its point person for its work in the area. “We closed a $13 million deal for ophthalmics and an $8 million deal for orthopedics.”

Over the summer, Fairfield sold four ophthalmology centers with a total of 32,700 square feet of space — at 4099 Embassy Parkway in Fairlawn, 4277 Allen Road in Stow, 4441 Hudson Drive in Stow and 2013 state Route 59 in Kent.

Whitney said his firm doesn’t disclose the names of the buyers and sellers it works with. But the addresses of the properties sold show three of the locations house Northeast Ohio Eye Surgeons and the fourth, on Hudson Drive, is listed as the site of Saint Clare Eye Surgery and Laser Center.

Then, in September, Fairfield sold two orthopedics facilities with a total of 26,500 square feet of space for a combined price of $8 million, Whitney said.

Those comprised a 22,000-square-foot facility at 2007 state Route 59 in Kent, listed as the address for the Crystal Clinic Orthopaedic Center; and at 72 Fifth St. SE in Barberton, also a Crystal Clinic location.

None of the sellers responded to inquiries about the sales, but the medical practices in the locations won’t be affected; they’ll simply become tenants of a new landlord, Whitney said. The quality of the tenants and their leases are what make the properties valuable in the first place, and the leases are the chief assets attracting investors, he noted.

The buyers of the properties were both out of state, with Flagler Investments of Florida listed in Summit County records as the buyer of the ophthalmology sites, and Kansas-based Crown MedRealty Partners purchasing the orthopedic sites.

Flagler representatives could not be reached, but Crown MedRealty managing partner Brian Beggs said his firm was attracted to the properties housing the Crystal Clinic operations because

Investors are especially attracted to buildings housing tenants with strong specialty practices, such as the Crystal Clinic’s orthopedic practice, brokers say. | FAIRFIELD ASSET ADVISORS

Buildings housing Northeast Ohio Eye Surgeons practices were recently acquired by investors. | DAN SHINGLER/CRAIN’S CLEVELAND BUSINESS

he sees them as a strong tenant within an attractive specialty practice.

“For us, it’s kind of a combination of a couple of things. Either it’s a longterm lease with a health system, the Cleveland Clinic or someone like that, or it’s a long-term lease with a leading specialty clinic — and the Crystal Clinic is known for being that,” Beggs said.

Crown MedRealty did its first deal in Ohio about five years ago, when it purchased Mercy Hospital in Massillon, which is now owned by the Cleveland Clinic and is a Crown MedRealty tenant, Beggs said.

Beggs says he’d like to buy more medical real estate in the Akron area, in part because it’s more efficient to manage multiple properties in or

around a single location.

“We sure are,” Beggs said, when asked if he was looking for more medical property here. “We do look nationally, but our playbook is, once we acquire in an area, we continue to look for more assets in that area, because it lets us operate more properties efficiently. … I think we’ll be more active there.”

Crown MedRealty owns about 1.5 million square feet of medical real estate in 43 states, representing investments totaling $650 million, according to Beggs. “We own 12 deals in Ohio now, so it’s getting up there among our bigger states,” he said.

But there is increasing demand for medical real estate generally, in Akron, across Ohio and across the coun-

try, Beggs and others said — with many other investors favoring it for the same reasons as his firm.

Medical real estate tenants are “sticky,” Beggs said. They have established patient bases close to their offices, they’re often located in purpose-built facilities, and they don’t like to move.

Medical tenants’ customers almost always pay their bills, too — often through governmental entities or insurance companies, Beggs said. Add to that the fact that medical services are in demand no matter what the rest of the economy is doing, and you have the recipe for a reliable base of tenants, he added.

“People get sick everywhere, people break bones everywhere, and peo-

ple have babies everywhere,” Beggs said.

That said, both Beggs and Whitney said Akron punches above its weight, with a particularly strong health care industry — and both said they intend to do more deals in the Akron area.

But buyers are facing increasing competition for medical real estate, which has become highly favored among investors for some of the very reasons Beggs suggests, says Peter Volas, senior director of real estate for the Cleveland Clinic.

“You have investors seeking investment opportunities, and health care has always been that one industry that is kind of safe, from an economic standpoint,” Volas said.

But as prices rise, the returns available to those investors are being squeezed, he said, noting that he’s now seeing “unheard-of” low capitalization rates of below 4% in markets such as New York City and San Francisco.

At the same time, health care continues to become a larger and larger portion of the nation’s gross domestic product, while hospitals and practice groups continue to consolidate and be rolled up into larger groups, which can lead to more real estate sales.

“When they buy the business (medical practice), they have to deal with the real estate,” Volas said, and some investors choose to sell it.

Some practice groups, and to a lesser extent hospitals, see their real estate as something that can be monetized via sale/lease-back arrangements, Volas and Whitney both said.

“You have all this momentum, and then you get people competing for properties,” Volas said. “They’re getting very aggressive with purchase prices.”

While the Clinic has no plans to sell any of its current facilities and prefers to own its real estate, Volas said the trend of others selling their real estate and investors seeking to buy it is likely to continue.

“I don’t think it’s going to slow down,” Volas said. “And I don’t think markets matter — whether it’s Akron/ Canton, Cleveland or Indianapolis.”

Whitney said he knows plenty of eager buyers around the country, in addition to Crown MedRealty, who will be interested in more health care real estate around Akron or Northeast Ohio generally, if he can find properties to sell to them.

“Akron is in our top 100 MSAs now,” Whitney said. “So it’s certainly someplace where we’re looking to do more. … It’s a hot market.”

Dan Shingler: dshingler@crain.com, (216) 771-5290, @DanShingler

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 19

P019_CL_20211206.indd 19

12/3/2021 12:11:14 PM

PORTER

From Page 1

Porter then pointed to the parking lot outside his office and said, “They put a sign that said Parking for President Porter. I told them to take that down because we’re all part of a team and we’re all trying to do the same thing: Honor the heroes of the game, preserve its history and promote its values.”

For most of the last eight years, the Hall of Fame has been led by a man who came across like a football coach giving a halftime speech during a Disney movie.

David Baker wasn’t just larger than life — at 6-foot-9 and 400 pounds, he was larger than left tackles. He wore purple suits. (Pink and red ones, too.)

He knocked on doors, handed out rings and became (by far) the most visible executive in the museum’s history, all while talking about football in the way a pastor talks about Paul’s epistles or a historian talks about Abraham Lincoln.

That’s not quite Porter’s style.

Physically, Porter is built more like a bank president than a bank vault.

Temperamentally, he prefers to stay out of the spotlight. Verbally, he’s more Gerald Ford than Barack Obama. But philosophically, the two men share the same romantic view of the game, believing it teaches its players life’s most important lessons.

“Behind you is a sign that says ‘A Game For Life,’ and from my early coaching days, I realized that,” said Porter, beginning the type of quote that could have come straight from Baker’s mouth. “The things that happen on the football field really do emulate life. The teamwork that’s necessary, the preparation that’s necessary, the fact that you fall down and get back up, the fact that you have penalties and get back up. More so than any other sport, it really is a game that prepares you for life.

“My sport was basketball, but I can’t say the fact that I traveled affects how I performed in life. But I can talk about how I needed the right guard to do his job. If everybody’s not doing their job, then things just fall apart. And football teaches you that.”

The Pro Football Hall of Fame in Canton. | JOE SCALZO/CRAIN’S CLEVELAND BUSINESS

zine — and a strong connection with the Hall, having served as the museum’s chief marketing and communications officer since April of 2020.

Previously, he served on the Hall of Fame’s board and chaired the host committee for the Hall’s Centennial Celebration, which was scheduled for the summer of 2020 but postponed to 2021 due to the COVID-19 pandemic.

“Jim was very, very qualified,” said Dennis Nash, the Hall of Fame’s executive chairman of the board. “He came from a big organization and if you’ve spent time in an organization like that, you’re managing ad men, you’re managing the corporate executives, you’re dealing with unions and labor — there’s a lot of different, moving parts.”

Porter also understands the Hall’s importance to Canton and Stark County, Nash said. The Hall doesn’t release annual attendance figures, but a 2018 New York Times article pegged it at 225,000 annually. Over the first week of November, it drew visitors from 49 of the 50 states — the outlier was Montana — but the bulk of its business comes from Ohio and Succession plan Pennsylvania. The Hall wants to do Baker’s retirement and Porter’s more to attract local fans who haven’t promotion were announced in the visited in years, which is why it resame press release on Oct. 16, but cently launched its “Best Football both moves had been in the works for Day Ever” series, where fans can some time, Porter said. Baker, 68, will watch an NFL game inside its conference center and meet a Hall of “THEY PUT A SIGN THAT SAID PARKING Famer. The first FOR PRESIDENT PORTER. I TOLD THEM game — the Week matchup beTO TAKE THAT DOWN BECAUSE WE’RE ALL 9tween the Browns PART OF A TEAM AND WE’RE ALL TRYING and Bengals — drew 400 people, TO DO THE SAME THING: HONOR THE pretty much all of them from Stark HEROES OF THE GAME, PRESERVE ITS and Summit HISTORY AND PROMOTE ITS VALUES.” County.

“I want the — Jim Porter, Pro Football Hall of Fame president community to continue to represent the Hall at the know the Pro Football Hall of Fame Ring of Excellence ceremonies for cares about them,” Porter said.

The museum has 501(c)(3) status the rest of the NFL season and spend the rest of the time on home, family as a nonprofit — ”We’re in good and business projects in California shape and we’re being fiscally responsible,” Porter said —and its sucand Nevada.

Porter, 57, was a logical choice to cess depends not just on local ticket assume the president role, which sales, but also community support oversees the museum’s daily busi- through partnerships and volunteerness operations. The Canton native ing for the enshrinement. That rehas extensive managerial experience quires someone who is connected — he was the CEO and publisher of with community leaders, which is a GateHouse Ohio Media from 2013- big reason why Porter got the job.

“I don’t think we even hesitated as 2020, which encompassed three daily newspapers and a monthly maga- far as that appointment goes,” Nash

Pro Football Hall of Fame executive director David Baker arrives during the Pro Football Hall of Fame enshrinement ceremony at the Tom Benson Hall of Fame Stadium in Canton on Aug. 6, 2016. | AP

said.

Baker’s executive director title is a different animal. The Hall of Fame wants to continue to raise its platform and grow its national presence, which could require a Baker-esque leader to raise funds and bring in more national sponsorships. That hire, if it happens, would likely take place after this year’s class is selected in early February, Nash said.

“The job completely changed from the time David came in to the time he retired,” said Nash, who also is the chairman and co-founder of Canton-based Kenan Advantage Group.

“We always talk about the NFL’s 32 franchises and this is kind of a 33rd franchise. Only there’s absolutely no downside. Everyone here achieved excellence. It was all the big names that ever played the game. David did such a great job elevating the awareness of that.

“I imagine this (executive director) is going to be a job of choice. A lot of people would be interested in taking this position.”

Village could boost museum The Hall of Fame museum operates separately from the $1 billion Hall of Fame Village project, which is in its second of three phases. But, as Porter said in one interview, separate entities does not mean separate partners. Each benefits from the other’s success.

Village CEO Michael Crawford declined to comment for this article, instead pointing to a previous statement that emphasizes the Village’s

independence from the museum before adding, “We are excited for Jim Porter to be taking over leadership responsibilities at the HOF and look forward to building a strong relationship with him that will benefit both organizations going forward.”

That relationship already exists.

The men are already familiar and have mutual respect for each other, and both sides are optimistic about the Village’s progress after years of delays. (The Village’s reputation for over-promising and under-delivering was due in part to Baker’s rosy rhetoric. In football, they call that being “scheme rich and execution poor.”)

Phase 2 includes the Constellation Center for Excellence, which could be completed before New Year’s and will offer 75,000 square feet of space for retail, research and offices. A retail plaza is also under construction and a Hilton hotel and football-themed indoor water park are up next.

“The old lesson of ‘look left, look right and look left again’ that your mom and dad taught you at the bus stop is probably pretty smart here,” Porter said. “There’s cranes all over the place, dump trucks coming in and out. Great work is being done everywhere.

“In Stark County, we waited for six, seven years for this all to get going.

Because of pandemics and some financing and other things, it was held up but now it’s moving forward at a great pace.”

Baker and Crawford both set a goal of drawing 5 million annual visitors to the Village. Porter said his job is to

get them into the museum as well.

“We have a better chance of getting them into the Hall of Fame if they’re 15 feet from our door instead of 15 miles, 15 hours, however you look at it,” he said.

Is 5 million possible?

“When you look at the whole model, yes,” Porter said. “They’re looking at youth field participants. They’re looking at events coming into the stadium. They’re looking at people who are coming to Shula’s (Steak House) for a great dining experience. They’re looking at people coming for meetings at the Center for Excellence. So, yes, I believe that’s an attainable number.”

The future of ‘The Knock’ There’s one more bit of business to sort out: “The Knock.” Baker was famous for knocking on the hotel doors of Hall of Famers to inform them of their induction, a tradition that stems from his first year as president in 2014. In a story Baker loved to tell — and, yes, embellish — he called Ray Guy in his hotel room in 2014, ending the punter’s 22-year wait. According to Baker, Guy passed out and dropped his phone, with Baker overhearing Guy’s wife say, “Are you OK? Do I need to call an ambulance?”

Somewhere between 30 seconds and two minutes later, Guy got back on the phone and said, “Mr. Baker, I apologize. I didn’t realize until this very second how important this was to me.” (Guy’s version of this story isn’t quite that dramatic.)

Baker said he had an epiphany at that moment and tried to find a way to share the experience with fans.

“The Knock” was born, proving to be a big hit with NFL Network and social media.

Porter isn’t sure what “The Knock” will look like in the future — it’s possible a Hall of Famer could assume those duties — but one thing is sure: No matter who does the knocking, the most important person is the one on the other side of the door.

“We have 186 (living) ambassadors at the Pro Football Hall of Fame that represent us every single day,” Porter said. “They played the game, they excelled at the game and they got to the level that most people don’t get to.

“Our job is to continue their legacy.”

Joe Scalzo: joe.scalzo@crain.com, (216) 771-5256, @JoeScalzo01

20 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

P020_CL_20211206.indd 20

12/3/2021 2:43:08 PM

CRAIN’S CLEVELAND BUSINESS

WORKFORCE

From Page 1

It’s too early for economists and others who follow the region’s workforce and its needs to accurately know the causes of the decline. But observers have offered a number of possible reasons.

One is that because the region has an older average population than the country as a whole, it has a greater number of people at an age and in a position where continuing to work was not an economic necessity. Essentially, they retired — and removed themselves from the labor force — a little earlier than planned.

“There’s a lot of dynamics at play that I think we’re still trying to fully understand,” said Jacob Duritsky, vice president for strategy and research at Team NEO, the regional economic development nonprofit. “I think what we may end up seeing is that a lot of people who were at least close to being in a position to retire, maybe did.”

Team NEO’s work covers 18 counties in Northeast Ohio, and Duritsky said the labor force decline in that region is about 4.5%. He also pegged the region’s workforce as 5% older than the national average.

With the region’s strong industrial base, that may mean that the retirement of skilled manufacturing workers could lead to the loss of institutional and technical knowledge, declining productivity and rising costs. A 2019 study by the Manufacturing Institute found that one-quarter of the manufacturing workforce nationally was over the age of 55.

Duritsky added that he, as well as many people like him who closely watch economic conditions, can so far only go by what they are hearing anecdotally to explain the impact of the pandemic on the economy.

“There’s sort of a younger generation of workers, too, who don’t necessarily seem as motivated, maybe as people were historically, to just take a job,” he said. “They’re looking for more, they’re looking for workforce culture and things like that.”

Jill Rizika, executive director of Towards Employment, a nonprofit that provides coaching and training to help connect people with jobs, is seeing people who, for a variety of reasons, aren’t rushing to get back to their jobs.

“I think parents in particular are really hard hit by what’s going on,” she said. “With all the uncertainty about child care or schools that could get shut down at any minute, how are you supposed to work when you could be called away at any minute to go pick up your kid and be home for 14 days?”

She also, though, is seeing people who are looking for training to avoid going back to jobs where they risk exposure to the COVID-19 virus — restaurant and hospitality workers in particular.

“I think we’re seeing an uptick in people going into training, either because they recognize that getting skills at this point will have a payoff in seeing their wages rise,” she said. “Also, maybe they were health care or hospitality workers and they don’t want to go back (to those sectors).”

The long-term issues of building a strong and growing workforce are being analyzed by the Fund for Our Eco-

nomic Future, another economic development nonprofit. It has begun a research project to identify what needs to be done to support and build the region’s workforce.

“More companies are asking about what the area needs for job retention and expansion,” she said.

Its project, dubbed “Where Are the Workers?,” is being done with the support of Team NEO and two other nonprofits that look at workforce issues, ConxusNEO and Policy Bridge.

A small group of the people who have returned to employment have chosen a way to use their time away from work that is paying off.

Tech Elevator, the Cleveland-based tech education business, has a 14week coding program that is attracting the attention of some who have temporarily left the workforce.

Marty Mordaski, director of the Cleveland campus, said that in the last six months, he has seen a 45% increase in applications from prospective students who are coming out of the food service industry.

“Even through the pandemic, we still maintained a 90% placement rate, meaning that 90% of our students are getting jobs in tech within 180 days of graduation,” he said. “So someone coming out of the food service industry, if we look at those folks that have (gone through) the program, when they come to Tech Elevator, their average annual earnings, which were $32,000 a year, their average salary post-Tech Elevator is about $57,000 a year.”

Jay Miller: jmiller@crain.com, (216) 771-5362, @millerjh

|

S E P T E M B E R 3 - 9 , 2 018

|

PA G E 2 9

Advertising Section

CLASSIFIEDS To place your listing in Crain’s Cleveland Classifieds, contact Ainsley Burgess at 313-446-0455 or email ainsley.burgess@crain.com

CLASSIFIED SERVICES ENVIRONMENTAL CONSULTING

LIST YOUR AD TODAY

BUSINESS SHOWCASE BUSINESS OPPORTUNITY

C.W. JENNINGS GLOBAL ENTERPRISE INC.

REAL ESTATE

From Page 1

To that end, Morning Calm has launched an office in Solon where it plans to house three experienced real estate professionals who will oversee leasing and property management of its new portfolio here and look to expand it. The purchase is its first investment in Ohio and follows its initial investment earlier this year for Aurora in Detroit.

It’s also part of a larger plan. Aurora Industrial is the vehicle for investments by institutional and private investors internationally as well as in the United States. Cho declined to identify the investors specifically.

“Aurora Industrial is a discretionary vehicle through which we are buying $1 billion in industrial assets in the Midwest over the next couple years,” Cho said. “We think there is an interesting tailwind that will take place from onshoring and reshoring of American manufacturing. Markets like Cleveland and Detroit have the benefit of the manufacturing boom of decades ago. With that comes available land, a skilled workforce and existing infrastructure on land and water for transportation.”

The other reason for buying into Northeast Ohio industrial properties is the size of the region’s industrial market, measuring about 300 million square feet. “It’s too big a market to ignore,” Cho said.

That is a big change from decades when the region’s manufacturing base was overlooked for faster-growing, higher priced economies on the coasts.

For its part, Premier will continue to develop and acquire properties in Northeast Ohio, however, Keven Callahan, a Premier principal, said in an interview that the sale will help it expand in markets outside the region.

Spencer Pisczak, president and co-founder of Premier, said in the same

interview, “We feel we had a significant amount of value and property concentrated in one market and have elected to diversify in other markets as well.” He said its growth will approach 10 million square feet in the near future.

Pisczak noted the company owns about 250,000 square feet of industrial space in Charlotte and pointed out its continued plans to remain active in the region as it just bought a property in Middleburg Heights.

The Middleburg Heights property is a shuttered Kmart on Bagley Road near Engle Road that was added to Premier’s portfolio in a $4.25 million deal on Nov. 16, just after the sales were completed. Pisczak said Premier is discussing uses of the property with several prospective users. Premier also has been associated with a potential Kroger warehouse in Oakwood, but Pisczak wouldn’t comment on that.

Cho and Pisczak declined to discuss specifics of the transaction beyond saying it encompassed more than 2.5 million square feet of rentable space.

However, using online realty data source CoStar and public records in Cuyahoga, Portage and Summit counties, the bulk sale includes warehouse, manufacturing and distribution center properties that traded for about $185 million. The properties are considered A, B and C quality and date from 1968 through the 2000s.

The best-known property of the bunch is the massive headquarters and distribution center that Premier developed through a partnership and leased to Arhaus LLC, the Boston Heights-based furniture retailer with a national store network. The nearly 744,000-square-foot building, completed in 2016, sold Nov. 12 for $75.6 million, according to Summit County land records.

With locations in Akron, Brooklyn, Glenwillow Village, Hudson, Macedonia, Solon and Streetsboro, the portfolio

includes a property as small as 15,000 square feet, but most are in the 100,000to 200,000-square-foot range. It’s a mix of single- and multiple-tenant buildings. Cho said Morning Calm underwrites each property individually and has an appetite for flexible office/warehouse space, as well as the much-sought new-breed industrial warehouses.

Northeast Ohio industrial and investment real estate experts consider it a significant transaction on several levels.

Alec Pacella, president of the NAI Pleasant Valley realty brokerage based in Independence, said in an interview, “It’s a frothy market. Cleveland remains a value play but is gaining a lot of value.

We’ve essentially added a new, institution-backed player to the market to bring in new ideas, while we still have the local entrepreneur Premier remaining in the market.”

George Pofok, a senior vice president in Cushman & Wakefield Cresco’s industrial unit in Independence, said the deal fits in the evolving nature of the region’s industrial market, part of a national phenomena.

“We’ve been primarily an entrepreneurial, local market with groups such as Fogg, Geis and Premier,” he said.

“Now we have more institutions coming in that didn’t care about this market in the past. The more of them that are here, the more exposure the region gets.”

Pisczak, a Cleveland native who ran Duke Realty Corp.’s industrial foray here and remained after it left, also was surprised by the variety of prospective buyers.

“This says a lot about our region,” Pisczak said. “We had multiple parties looking at our portfolio. It made more sense to sell to one buyer rather than 10.

There are now at least 30 different outof-town entities that have come into the region in the last 20 years.”

Stan Bullard: sbullard@crain.com, (216) 771-5228, @CrainRltywriter

Manufacturing / Distribution Advising Industrial / Consumer Goods Global Expansion Financing Construction / Acquisitions Corporate Partnering (216) 505 - 5049 / ( 855) 707 - 1944

C.W. Jennings Global Enterprise Inc. A Unit of C.W. Jennings Industrial Empire

EXECUTIVE RECRUITER POSITION AVAILABLE

Request for Statements of Qualifications Marketing & Communications Services Agency for Cleveland-Cuyahoga County Port Authority The Cleveland-Cuyahoga County Port Authority (“Port Authority” or “PA”) is seeking to identity and potentially engage qualified firms or individuals to serve as our agency for Marketing Services.

Diversity, equity, and inclusion (DEI) are a priority for the Port Authority and will be a factor in the review and selection process. In addition, service providers to the PA must pay a minimum wage of $15/hour to any employee working under a PA contract.

Role & Statement of Qualifications For complete details regarding the role of outside Marketing Agency (‘Agency”) and for the required Statement of Qualifications, please visit ww w.portofcleveland.com Please submit the Statements electronically to Melisa Freilino (melisa. freilino@portofcleveland.com) at the Port Authority by close of business on December 13, 2021.

Any procedural questions may be directed to David S. Gutheil, Chief Commercial Officer (david.gutheil@portofcleveland.com).

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 21

P021_CL_20211206.indd 21

12/3/2021 2:40:54 PM

EDUCATION

Notre Dame College Notre Dame College welcomes two new members to our Board of Trustees. Michael Canty is the Owner, President & CEO of Canty Alloy Precision Technologies, with 40 years of experience in manufacturing and industrial distribution, business start-ups, and leadership. He has a strong interest in public service and served as Mayor of his community for eight years. Kirk Herath, recently retired Vice Herath President, Associate General Counsel & Chief Privacy Officer of Nationwide Insurance Companies, current Principal at Pillars Consulting Group and adjunct professor of law at Cleveland-Marshall Law School specializing in tech-data privacy and cybersecurity law, also joins the board. We thank them for their commitment to our college’s mission.

PEOPLE ON THE MOVE

Advertising Section To place your listing, visit www.crainscleveland.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

HEALTH CARE

LAW

NONPROFITS

NONPROFITS

Pioneer Physicians Network

Taft Law

SAW, Inc.

The Trust for Public Land

Matthew Finneran, MD, Family Medicine Specialist at Pioneer Physicians Network, is awarded “Best Physician” for providing exemplary health care to seniors. Dr. Finneran is one of 32 physicians nationwide being honored by agilon health, a company transforming health care for seniors by empowering independent PCPs. Compassionate and thorough, Dr. Finneran goes above and beyond for seniors; his commitment allows him to address medical issues early on and prevent unnecessary visits to the ER.

Tessa Gray has joined Taft as an associate in the Intellectual Property group. She counsels clients on a variety of intellectual property-related matters and assists with patent, copyright, trademark, and trade secret matters for multiple local and national clients. Tessa earned her J.D., cum laude, from Howard University School of Law, where she was honored as the 2021 recipient of the Microsoft x IIPSJ Outstanding Student in IP Award. She received a B.A., magna cum laude, from Lincoln University.

SAW, Inc. is thrilled to have Stacey McKinley join its board of directors.

She is an attorney with experience advising nonprofits, currently serving as a director at the Cleveland Clinic and an adjunct professor at Cleveland-Marshall College of Law. She’s worked with the Greater Cleveland Food Bank and Cleveland State University and served on boards for Seeds of Literacy and Northern Ohio Planned Giving Council. Her experience will enhance SAW, Inc.’s fundraising efforts to fulfill its mission.

The Trust for Public Land announces the promotion of Sean Terry to Associate Vice President of Ohio. Sean has led the organization’s work to put a park within a 10-minute walk of home for every Clevelander. He’s now engaging in efforts statewide, including cities like Cincinnati, Columbus and Toledo, to advance park equity. More than half of Ohioans don’t have a park close to home. Sean is committed to creating treasured green spaces that will improve their health, happiness and quality of life.

REAL ESTATE HEALTH CARE

Pioneer Physicians Network HEALTH CARE

Pioneer Physicians Network Congratulations to Andrea Cerone, MD, Family Medicine Specialist at Pioneer Physicians Network, who is awarded “Best Physician” for excellence in senior patient care. An advocate for patients, Dr. Cerone created and serves as chair of the After Hours Clinic at Pioneer, an innovative program that gives patients access to weekend care and diverts unnecessary trips to the ER. Dr. Cerone is being honored by agilon health, a company transforming health care for seniors by empowering independent PCPs.

Pioneer Physicians Network is proud to announce Gary Pinta, MD, Internal Medicine Specialist, as “Best Physician” for his exceptional approach to health care and commitment to senior patients. He is being honored by agilon health, a company transforming health care for seniors by empowering independent PCPs. Dr. Pinta sees high-risk patients 37% more frequently than his Akron peers.

Furthermore, he puts in extra time to ensure patients secure the most affordable Medicare coverage possible.

KIKO Realtors, Auctioneers & Advisors LAW

Taft Law Ashley Wetzel has joined Taft as a business and finance associate. She assists on mergers and acquisitions, private equity, capital formation, and corporate governance matters.

Ashley earned her J.D., cum laude, from Case Western University School of Law in 2021, where she volunteered on the Street Law program for detained juveniles. She received a B.A., summa cum laude, from The Ohio State University, majoring in criminology and Spanish.

LAW

NONPROFITS

SAW, Inc. SAW, Inc. is pleased to announce that Tiara Bagley will become Adult Activities Service Manager at its Euclid Adult Activities Center.

Bagley worked with individuals with developmental disabilities in a residential setting for nearly a decade before taking a position as a habilitation supervisor for the Cuyahoga County Board of Developmental Disabilities. She holds degrees in English and organizational leadership. In her new role, she will ensure smooth, safe operation of the center.

Gallagher Sharp LLP

NEW GIG? Preserve your career change for years to come.

C O N TAC T

Plaques • Crystal keepsakes Frames • Other Promotional Items

Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

Gallagher Sharp is pleased to announce the addition of Associate Chloe C. DeAngelis, Esq. As a member of the firm’s Insurance and General Liability Practice Groups, Chloe counsels insurers on coverage questions and defending claims alleging bad faith, unfair claims practices, and breach of contract through coverage investigations and opinions, and examinations under oath. She has a wide variety of experience in tort litigation. Chloe received her law degree from the University of Akron School of Law.

22 | CRAIN’S CLEVELAND BUSINESS | DECEMBER 6, 2021

NONPROFITS

Cleveland Water Alliance Cleveland Water Alliance welcomes Michael Schum to their Board of Directors. Michael has nearly 30 years of experience in the automotive and consumer products industries, and has spent the last 20 years in leadership roles at Moen. He is the Vice President of Global Product Development, overseeing the strategy, development, and execution of company products. CWA has a longstanding partnership with Moen and looks forward to facilitating innovative water technologies as part of this collaboration.

KIKO Realtors, Auctioneers & Advisors welcomes Margaret Jordan, J.D., M.S., to their Business Development team. Margaret joins as a Director of Business Development, working with estate attorneys, business consultants and commercial real estate brokers. With more than 15 years’ experience in business development strategy, lead generation, project management and revenue development, Margaret will serve as an advisor and liaison to anyone who is preparing for, or experiencing, a liquidity event where they need to convert an asset to cash. She currently serves on the board for the Association of Corporate Growth and is chair of ACG’s Women in Transactions Committee. She earned her J.D. from the University of Akron School of Law.

NONPROFITS

SAW, Inc. SAW, Inc. is excited to announce that Marchel’e Perkins will become Adult Activities Service Manager at its Maple Heights Adult Activities Center.

Perkins worked for the Cuyahoga County Board of Developmental Disabilities for more than a decade before moving to a direct service professional supervisor role at SAW. She holds degrees in human development and family studies and education. Her ability to successfully adapt in a changing work environment made her a great candidate to promote.

STAFFING & SERVICES

Direct Recruiters, Inc. Direct Recruiters, Inc (DRI), Executive Search, is pleased to announce that Dave Bevington has been named Partner. Dave has been instrumental in the growth of DRI’s Automation practice area. His resourceful and creative approach and style enable him to easily connect with executive level talent and form long lasting partnerships. Dave’s ability to build and implement high-level business strategies has led to his continued growth and success at DRI.

NOMINATIONS NOW OPEN

crainscleveland.com

Executive editor Elizabeth McIntyre (216) 771-5358 or emcintyre@crain.com Group publisher Jim Kirk (312) 397-5503 or jkirk@crain.com Associate publisher Amy Ann Stoessel (216) 771-5155 or astoessel@crain.com Managing editor Scott Suttell (216) 771-5227 or ssuttell@crain.com Assistant managing editor John Kappes (216) 771-5359 or john.kappes@crain.com Web editor Damon Sims (216) 771-5279 or dpsims@crain.com Assistant editor Rachel Abbey McCafferty (216) 771-5379 or rmccafferty@crain.com Art director Kayla Byler (614) 312-7635 or kayla.byler@crain.com Senior data editor Chuck Soder (216) 771-5374 or csoder@crain.com Cartoonist Rich Williams REPORTERS

Stan Bullard, senior reporter, Real estate/ construction. (216) 771-5228 or sbullard@crain.com Lydia Coutré, Health care/nonprofits.

(216) 771-5479 or lcoutre@crain.com Michelle Jarboe, Enterprise reporter.

(216) 771-5437 or michelle.jarboe@crain.com Amy Morona, Higher education.

(216) 771-5229 or amy.morona@crain.com Jay Miller, Government.

(216) 771-5362 or jmiller@crain.com Jeremy Nobile, Finance/legal/beer/cannabis.

(216) 771-5255 or jnobile@crain.com Kim Palmer, Government.

(216) 771-5384 or kpalmer@crain.com Joe Scalzo, Sports business.

(216) 771-5256 or joe.scalzo@crain.com Dan Shingler, Energy/steel/auto/Akron.

(216) 771-5290 or dshingler@crain.com ADVERTISING

Events manager Erin Bechler, (216) 771-5388 or ebechler@crain.com Integrated marketing manager Cody Smith, (330) 419-1078 or cody.smith@crain.com Sales manager Mara Broderick, (917) 612-8414 or mara.broderick@crain.com Sales and marketing coordinator Shannon Smith, (440) 281-6397 or shannon.smith@crain.com Account executives Laura Kulber Mintz, Loren Breen, Kaylie West People on the Move manager Debora Stein, (917) 226-5470, dstein@crain.com Pre-press and digital production Craig L. Mackey Office coordinator Karen Friedman Media services manager Nicole Spell Billing YahNica Crawford Credit Thomas Hanovich CUSTOMER SERVICE

W

e are looking for senior-level professionals who stand out in the field of law and have practiced at

least 10 years. They must have shown the ability to affect

change in their roles or practice areas. They should serve as role models and have assumed leadership positions in professional or civic organizations.

Winning candidates will be featured in the Feb. 28 Wprint and online issue of Crain’s Cleveland Business.

CrainsCleveland.com/Nominate

NOMINATION DEADLINE:

JAN. 5

Customer service and subscriptions: (877) 824-9373 or customerservice@crainscleveland.com Reprints: Laura Picariello (732) 723-0569 or lpicariello@crain.com

Crain’s Cleveland Business is published by Crain Communications Inc. Chairman Keith E. Crain Vice chairman Mary Kay Crain CEO KC Crain Senior executive VP Chris Crain Secretary Lexie Crain Armstrong Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1230 (216) 522-1383 Volume 42, Number 44 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except no issue on 1/4/21, combined issues on 5/24/21, 6/28/21, 8/30/21, 11/22/21, at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230.

Copyright © 2021 by Crain Communications Inc. Periodicals postage paid at Cleveland, OH, and at additional mailing offices.

Price per copy: $2.00.

Postmaster: Send address changes to Crain’s Cleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912.

1 (877) 824-9373.

Subscriptions: In Ohio: 1 year - $79, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, MI, 48207-9911, or email to customerservice@crainscleveland.com, or call (877) 824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax (313) 446-6777.

DECEMBER 6, 2021 | CRAIN’S CLEVELAND BUSINESS | 23

P023_CL_20211206.indd 23

12/3/2021 9:03:27 AM

T:10"

Unexpected P s r s o e blem n i s : Bu

T:13.5"

AT&T Internet for Business helps protect you from cute videos that are actually malware.

Get AT&T Internet for Business with Internet Security Suite powered by McAfee®. Call 855-432-1500 to learn more.

McAfee and the McAfee logo are trademarks or registered trademarks of McAfee, Inc. or its subsidiaries in the United States or other countries. ©2021 McAfee, Inc. All rights reserved. ©2021 AT&T Intellectual Property. AT&T and the Globe logo are registered trademarks and service marks of AT&T Intellectual Property. All other marks are the property of their respective owners. Geographic and service restrictions apply to AT&T Internet for Business services. Internet speed options not available in all areas. Call or go to www.att.com/smallbusiness/explore/internet.html to check qualification.

Filename: 735934-1_ATT_IPBB_Puppies_10x13_5_v3.indd

IPBB Print - Puppies